THE CORPORATE SCANDAL

The Goldman Sachs Swap Scandal

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The Goldman Sachs Swap Scandal

Introduction

Any kind of business is basically a small or big community of individuals that transform their resources that they obtain from their suppliers and into products and services they offer to their customers who find them useful. The same is true for non-profit organizations and federal government, state and local agencies. Their scorecards is different as they use a balance sheet instead of profits however, their main activities remain the same that is good enough revenue must be generated or their activities will come to a halt. A number of different organizations of high reliability obtain good performance levels as they attract and then retain not only employees but also suppliers, customers and investors. This is the reason why establishing organizations of high integrity takes a lot of time and effort, but this does not happen automatically as humans are not morally perfect. Unethical employees, customers, suppliers and even investors can prevent different organizations from accomplishing superior performance levels and high integrity. Moreover, unethical organizations can also be profitable…but only in short term and not in long term (Collins 2009, pp. 3-4).

Over the past years, the war on terrorism, a failing economy, the assault of civil liberties and the constitutions and corporate scandals have not only been major stories but worst crisis. However, there have also been several other issues especially stale social problems for instance important American institutions and public services that are barely part of any national agenda. There is no doubt that the United States is the most richest and powerful country in the whole world and in the history of humans. There are several millionaires and billionaires while millions of Americans are better off than they were before. Even then because a big amount of national revenues is concentrated in comparatively few hands, a large number of Americans are in worse conditions financially as compare to their counterparts in other advance countries. It is important to note that in any kind of corporate scandal; only the poor are not the worst casualties. There are millions of middle-class workers and even investors who have been hurt and former powerful people of the business community have been demoted to public disgrace and in some cases perhaps even prison (Butts 2003, pp. 1-2). At the start of the 21st century, several corporate scandals broke out in the United States and a number of different firms along with their managers and accountants were accused of corruption and dishonest practices. These corporate scandals ruined more than the ratings of credit and market values for instance WorldCom, Global Crossing and Enron. All these incidents together shattered public faith as far as performance of the firms was concerned and contributed to a severe financial decline (Kuhn & Ashcraft 2003, pp.21).

The Goldman Sachs Group, Inc is international investment banking, securities and Investment Corporation that is providing a number of services to its clients that includes economical services to its clients such ...