The Adelphia Communications started as a small cablevision industry, and after a few years of hardship, kicked its way to the top as one of the earning companies in its industry.Adelphia has always been not too loud about what is going on with the business proper. As the public was made unaware of, the company was already in debt, causing the owners to consider entering cross-borrowing agreements as an option to get up again and have all their debts paid. However, the result was otherwise. Instead of recovering from such, they only have acquired some more.
But despite being downed to debt, they still remained quiet about it. Slowly the company went to bankruptcy yet managed not to disclose the real picture. As per business procedures, the integrity of a company starts from projecting a good image especially to the investors so that the finances would be kept.Because investors are the lifeblood of a business, they will be discouraged to continue with business partnership if they know that the company they are investing on is on its way down. And this is what the Adelphia owners prevented from happening.
All businesses are responsible to have clear documents. This covers re-evaluating all printed materials including small business advertising, brochures and other documents, making sure they are precise and professional. Most important, the information stated on those documents should be laid as facts, not misrepresented nor misinterpreted.Business owners should also take a hands-on approach to accounting and record keeping, not only as a means of gaining a better feel for the progress of the company, but as a resource of any “questionable” activities.
Gaining control of accounting and record keeping allows ending any dubious activities promptly.As per what happened to the Adelphia scandal, the owners failed to perform the ethics of accounting information, in which they have committed securities fraud and misleading financial analysis. They have tried to hide the debts by delaying the release of financial documents which should be submitted to the Securities and Exchange Commission.Ethics should be adhered, as it is a systematically structured behaviors and practices that everyone should follow; this dictates what is right or wrong as far as moral discussions are concerned.Any successful corporation must remain focused on earning a profit.
With no profit, the company loses value and the employees eventually lose their jobs. However, business ethics do not allow a company to do whatever is necessary to make money.Corporate social responsibility dictates that businesses must provide safe working conditions and use manufacturing practices that do not unnecessarily harm the environment. Business ethics also require that companies provide accurate financial data to stockholders and avoid advertising their products and services to consumers under false pretenses.
List of ReferencesBull, Gregory. “Adelphia founder John Rigas found guilty.” Associated Press [online]. Availablefrom <http://www.
msnbc.msn.com/id/5396406> [8 July 2004]Crystal, Gary. “What is Business Ethics?” [online]. Available from<http://www.wisegeek.
com/what-is-business-ethics.htm> [29 April 2010]Fischer, Carol and Jim Mahar. “Adelphia Communications: A Case Study.”St. BonaventureUniversity Available from <.www.financeprofessor.com/.../adelphia/Adelphia%20Communications.ppt>
