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1 full assignment and 2nd part of the question
Answered Same DayMay 13, 2021MAA763

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Soumi answered on May 20 2021
55 Votes
Corporate Fraud Case Analysis
Contents
Introduction:    2
Volkswagen Fraud Analysis:    2
Type of Fraud:    3
The Process of Avoiding this Situation:    4
GlaxoSmithKline Fraud Analysis:    4
Type of Fraud:    5
The Process of Avoiding this Situation:    6
Conclusion:    7
References:    8
Introduction:
Profit making and increasing revenue have always remained the primary focus of the large organisations, and business expansion is just a bi-product of this corporate culture. However, the innovation and the rapid increment into the growth and development of commercial technology, and the globalisation movement have opened up numerous opportunities for large organisations to expand their business operations. Since the industrialisation, the primary objective of the private organisation has remained the same, which is to dominate the market place and to gain competitive advantage.
However, different organisations have adopted multiple unethical methods to meet the organisational objectives and these activities have not only violated the legislation but also forced the organisation to avoid social responsibilities as well. The desire for aggressive growth, and to make rapid financial progress has often involved the decision-making bodies of multinational organisations into unethical activities in order to fulfil personal interest. This report will discuss two major scandals, which were performed by two large organisations in order to expand their business operations and increase the overall financial performance of the organisation. In order to shed light on the corporate unethical decision making, the recent Scandal of Volkswagen and Toshiba has been taken.
Volkswagen Fraud Analysis:
From the beginning of 2016, many people have complained to the consumer's composition that the Volkswagen Group's cars are not as skilled as they claim, but very few complaints attract the attention of officials or governing agencies. Volkswagen is a US-based car-manufacturing organisation that has been operating its business since 1937. Since then, this organisation has received numerous awards for outstanding performance and reliable service to consumers. One of the government agencies claimed that the car manufacturing company had done an emission swindle.
That is why the government agencies made this claim because there was something wrong in the report of the commission for the organisation. As mentioned by Schiermeier (2015), since the Paris Environment Treaty, global governance agencies have given a lot of emphasis on environmental degradation due to the exploitation of natural resources and emissions of harmful elements for energy requirements. These
eath-taking policies of governing agencies have attracted a lot to the automobile industry, where the car manufacturers are bound to reduce the rate of emissions of their cars with each new car launch.
Type of Fraud:
To avoid any legal action, Volkswagen Company used special software, and with the help of this software, the results of the emission-tracking sensor were made positive. The result was to sell them to the market without any inte
uption. The truth is that the report of emissions was coming very little compared to the actual vehicle in this case. This organisation has always been saying in its defence that the actual consequences can be different depending on the equipment of regional governing bodies (Zhou 2016).
The automobile industry has become very competitive since 2012 because the industry has constantly been changing the law and since 2012, there is a huge trend in this industry in the industry, due to which competition in this industry is large. Volkswagen is the largest manufacturer of cars in Europe, and it is the supplier of all the needs of the private vehicle in foreign countries. In spite of being a very successful organisation over the last few years, this organisation lost its competitive edge due to its potential risk of being replaced by its competitors.
The financial performance of this organisation has been te
ible over the past several years because the continuous cost of the...
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