Waste Management

Waste Management Scandal

Janice Whitted

Strayer University

Professor Steven Brydges

October 29, 2012

According to your dictionary (2012), ethics in is the moral standards of determining the behavior of others and assume that "do unto other as you will have them do unto you". In business, you have to consider the consumers, clients, and shareholders. Because these people has such a significant factor in your business dilemma arises among the different interest it can become extremely tricky. Business ethics become multi-faceted and complex.

Many factors affect business ethics, honesty, carefulness, objectivity, integrity, legality, respect of colleagues and others. You have social responsibility, human subject protection, competence, responsible mentoring and publication, as well as non-discrimination, openness, confidentially and respect for intellectual property.

The Securities and Exchange Commission (SEC) governs the way stockbrokers and investment bankers do business. Accounts ethics differ from other business ethics, especially public held corporation accountants, they depend upon complete transparency and honesty. Shareholders can be harmed when they act unethical.

In this day and time, ethical thought s has gone out the window and greed has become the focus. During the GMC bail out, executives used the monies to meet their needs and not concern about the employees, stakeholders, or the economy. The executives flew to Washington in private jets to ask taxpayers for bailout monies, when questioned about why they did not use commercial transportation, they replied for safety reasons.

Waste Management a Houston based company, in North America, they are the leading provider of comprehensive waste management and environmental services and in the United States they are the leading developer, operator and owner of waste to energy and landfill, gas to energy facilities. They provide a full range of environmental services, and serve over 21 million customers with environmentally management of solid waste and the transformation of waste into usable resources. (2012)

Waste Management accounting department is responsible for all in house billing, pay roll, they prepare financial statements, prepare journal entries on a monthly basis, analyze general ledger for accuracy of accounts. Collect and analyze financial statement and reports. Review monthly financial reports and participate in financial meetings, assist with the preparation of year-end closing and annual audit. They provide expertise and guidance to other financial personnel for proper internal and external financial accounting procedures. (2010)

According to material given to the SEC and the person who reviewed, suggest that

fraud possibly started in 1991 through part of 1997. They useful life extended by what the

market value should have been and the depreciation expense was distorted by assigning large

amount of residual or salvage values. Despite the propping up effect this had on the companies

financial margin, the waste industry went into a deep slump. Fixed assets that had no salvage

were re-computed by assigning arbitrary salvage values. Bailey (1999).

According to the article "Waste Management- Distorted Accounting Methods for

Depreciation and Amortization Expanses" The value of the landfill sites were assigned with

book values that did not