Employees especially the accountants and some top

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employees, especially the accountants and some top level managers volunteered for this fraudulent act and acted in a United Way to deceive the shareholders overall. Generally, the unethical practices in the company have a general impact on the interests of the employees which actually happened in the case of Nortel. Some unethical practices that resulted in the decline was the undue and inappropriate compensation package of the senior management that did not match the managers at the same level of other companies. This aspect was crucial because it unnecessarily increased the expenditures of the company which reduced the profitability of Nortel in return (Vinluan, 2009). Another important concern was the evidence that the activities of financial analysts and accountants with the help of senior managers were unethical as they were involved in violation of the principles of accounting with recording an unrealistic results in order to gain personal benefits. The practices of accountants that were mainly bureaucratic reduced the profitability of the organization. The accountants also disregarded the GAAP principles which were directly in violation with accounting code of conduct. Instead, the accountants created forgery funds that provided personal benefits to the senior executives and accountants. Hence, I believe that people were responsible for the meltdown of the Nortel cooperation (Vinluan, 2009).
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NORTEL CASE STUDY 9 What happened to Nortel is similar to what happened to WorldCom and Enron in the early 2000’s and to Lehman Brothers, Citigroup and many other banks during the 2008 financial crisis. Why do business people keep making the same mistake? There are many giants like Citigroup, Enron, Lehman Brothers, WorldCom and many other similar organizations that suffered meltdowns which was mainly due to their primary stakeholders making mistakes. The major reason behind these mistakes was greed of money and act against the corporate citizenship as they thought that they will be able to continue with their unethical practices and continue making money by making accounting discrepancies for tax avoidance practice and showing unrealistic profitability which was inturn the losses made by the company (Wahl, 2009). This could have been avoided if there were strict laws and regulations in place and were actually implemented by the board of directors especially the UN Global Compact Principles so that no individual can act in an unethical manner that can severely harm the organizations to an extent that it results in financial losses and insolvency. This involved intense focus and implementation of strategic philantrophic practices. After the case of Lehman Brothers, the Department of Justice Asset Forfeiture Program has also been effective and has become a major part of the federal government activities to cover major criminal activities in organizations so that the criminals can be caught and imprisoned. After the decline of Enron, the Sarbanes Oxley Act was designed and launched that empowered the Security Exchange Commission so that no financial fraud can occur and accountants follow the accounting practices along with auditing companies that were given complete independence in reporting the accounting practices of any organization (Vinluan, 2009).
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