Illegal Corporate Economic: Black(Illegality)
Financial Transaction and Corporate Fraud in Capitalistic Economy
Readings:Friedman, Milton, “The Social Responsibility of Business is to Increase Its Profit” The New York Times Magazine Sept. 1970
Reinhardt, Forest l., Stavins, Robert N. and Victor, Richard H. K Date:Corporate Social Responsibility through an Economic Lens Harvard Kennedy School Working Paper RWP08-023 April 2008
Topic:Financial Fraud
Film:Enron: The Smartest Guys in the Room by Alex Gibney (2005yr)
Readings:AICPA Center for Audit Quality, “Summary of Sarbanes Oxley Act of 2002”& lt; /span>
Hill, N. et al, Auditors Reactions to Sarbanes Oxley” The CPA Journal Vol. 87 n.7
Mazar, Nina and Ariely, Dan “Dishonesty in Everyday Life and Its Policy Implications” Journal of Public Policy and Marketing Spring 2006 pp. 117-23
Matters that require attention: It is economic standpoint formal essay form, no plot summary, No Wikipedia, must be used economy theories and principles that are mentioned in Film and Readings. must be inserted quotations and citations by Film and Readings. I want that my paper is very detailed and exhaustive analysis in economical field. The essay have to include the economics, politics, math, finance, and accounting.
The most important Key-point words (*Please, I have to use at least the words ): financial fraud, Accounting fraud (false of sales and slaes credit, false of debt and liabilities, false of loss reduction), corporate financial systems, asymmetric information, adverse selection, moral hazard, omission of contract financing, the theory of Sarbanes-Oxley, Free-market, financial business, The Enron scandal, the greed of human being, capitalistic economy, free-market, stock trading and dealing, stock maniplation, Investment, illegal economoic, false information and rumor, coporate fraud, bankruptcy of joint enterprise, mark to market, hypothetical future value, financial affairs, selfishness, financial capita, ethical management.
Main Focus: I want mention about the illegal coporate economic: Black(Illegality)- Financial Transaction and corporate fraud. Above all, the readings and films are the most important for essay because this essay must be based on the films and readings.In addition, I have to mention cause and effects about my topic. My essay have to focus on financial and accounting fraud of economic theories. In society, there are a lot of economy acivities in companies and personal business, but many peopleand organization have managed illegal activity with selfishness becasue they wanted their own benefits.
Therefore, they have broken the social customs, ethical management, and legal activity. However, they got the business failure, and spreaded social negative effects. Above all, strong social people and firms have made unfair profit through their social position and power. So, Iwant get essay of very detailed and exhaustive analyses in economic standpoint. Also, the essay must be involved micro & macro theories. I have to focus on economical discussions and information. Also, the paper have to focus on analysis of financial economy. not the analysis of the movie. In addition, the paper must be consisted of economic theory, economic phenomenon (cause and effect), and the principles of political and financial economy. Please make introduction-3body-conclusion
Sample essay (I have to write much better than these sample essaies. )
The Development and its impacts of Technology in Social Economy
What is the economy in modern society? And why do humans have to take part in economic activities? Both economics and science are the foundation of the entire discipline. Without the development of its civilization, no nation can enjoy richness of life in a true sense even if it succeeds in achieving rapid economic development. In the history of human civilization, every human has engaged in economic activities and developed their economic structures. Today, the success of industrial economy, to a large extent, depends on the improvement of science and technology. The development of technology is the key factor in growth of an economy. However, there is no straightforward equivalence between economic progress and the advancement of scientific technology. Unfortunately, the growth of technology is concomitant with its pitfalls. The rapid advancement in scientific technology can create socio-economic inequality and a declining economy resulting from market monopoly with compulsory merger, and tragedy of the commons through an environmental issue.
As the economy and technology are currently changing at a rapid speed, the competition between companies is becoming fierce. In this highly competitive market, it is important for companies to differentiate themselves from other rivals in order to achieve a success. Indeed, it is creative power that can guarantee our economic success in the midst of the fierce competition of the current free world market. For these reasons, many companies and organizations try to their blue-ocean (non-competitive promising market) strategies. However, even though there are policies for implementing free market and competition, overwhelmingly high level technology and knowledge can cause monopoly in the market.
Indeed, monopoly is a common social and economic issue in contemporary society. The issue is addressed in a variety of social and cultural venues. An example would be the movie ‘Wall-E’. This movie deals with the issue of absolute monopoly and compulsory merger. In the movie, there is just one company: the BnL(Buy N Large), but the company manages diverse economic sectors such as cleaning companies, banks, gas stations, grocery stores, and so on. This means the absolute monopoly and compulsory merger engender a general market failure by precluding the free competition in the market. In addition, this movie shows the biggest and highest technology company can control social economy as a government control the ordinary people’s life.
Human beings are helpless against the power of nature.
Humans try to predict and deal with natural phenomenon, but sometimes they are not always successful in these attempts. These days most of the natural disasters occur resulting from environmental pollution. Also, as environmental catastrophes are caused by the economic activities of all business areas agriculture, construction industry, and service industry. More importantly, keep it in mind that the environmental catastrophe is caused by the development of scientific technology. For example, the movie ‘Wall-E’ embodies the tragedy of the commons, which mean common goods can cause a negative externality because humans tend to benefit themselves at the expense of others.
By using technology, humans produce and dispose their product for their benefit, and the earth has been turned into huge mountains of trash in the movie. For this reason, humans face a terrible environmental catastrophe and they have to give up their public property and prosperity. This implies that the negative extremity such as environmental pollution can cause transaction cost because the earth is a public goods to preserve for humanity. Also, if people do not care about public goods because it is not owned by anyone, the Coase Theory situation is able to come into existence. Another example is the movie ‘A Civil Action’. This movie also addresses the relationship between environmental pollution and social economy. This movie shows that a big major company uses its power in order to gain benefit a number of ordinary people experience significantly negative impacts. Companies with strong economic power caused the tragedy of the commons. Therefore, the relationships between companies and ordinary people have caused a negative externality. Also, by using the Coase Theory with transaction cost, they seek to find the best solution. Even though the power of man over nature has increased, the forces of nature are stronger than humans in economic society.
Since the beginning of civilization, human beings have achieved splendid developments in science and technology. The contemporary society is in an era of rapid change, and it is not easy to keep up with all the trends in this increasingly technological world. In addition, the fast shifts in all areas of daily life make it difficult to evaluate the challenges and opportunities the technologies impart correctly. However, high technology engenders some problems in a social economy. As mentioned above, because they can cause market monopoly with compulsory merger and tragedy of the commons by an environmental catastrophe, knowledge-intensive industries are forming an ever-greater part of the world economy. Therefore, society is changing and the economy is much more skills driven and knowledge based. Humans have to consider the impact of technological development in connection with the economic growth as well as with other social issues.
The Great Depression: Financial Economy Crisis and Its Influence on Society
Oftentimes, individuals are tempted to differentiate economy from the actual social ramifications that it portends throughout the system. However, the fact of the matter is that strong economic forces necessarily can be felt within the social and political system at any given point in time. Whereas the manner through which this is evidenced is naturally diminished during a time of relative stability and/or growth, hardships and transitions in an economy generally show within the social and political climate in telling ways and manners. As such, the following analysis will detail the way in which these impacts are felt, as well as discuss some economic theories, with respect to the social interpretations, status, desire and hope of human life, social policies, and other key factors that were represented within the United States during such times of rapid change and economic uncertainty as the industrial revolution and specifically the Great Depression. These periods in time had a demonstrable and definitive impact upon how the economic cycle, the American dream, and risk taking came to be understood.
Firstly, in order to understand the Industrial Revolution, it must be understood that this was a period of runaway growth for almost each and every industry within the United States. Although it is oftentimes tempting to assume that the Industrial Revolution was only concentric upon benefiting the moguls that owned the iron and steel mills throughout the Northeast, almost each and every sector of the American economy experienced a level of growth as a result of this point in time. However, it must also be understood that the individual worker was at a distinct disadvantage for much of the Industrial Revolution. Due to the fact that the social inequality of the times was perhaps more distinct than any other period in American history, the drive for ethics and the rise of such political movements as the progressives sought to enable the social and political structure to represent the political and economic needs of the people to a more effective degree. From the standpoint of risk taking, it can be stated that the time during the Industrial Revolution was one in which both business-owners and workers were prone to take risks (Bernanke 2). The pervasive spirit of the era was one that believed that the growth that was being experienced and exhibited throughout the economy could somehow continue to be sustainable in perpetuity.
By way of comparison, the period of the Great Depression evidenced a distinctly different, arguably opposite, societal, economic, and political approach. As a result of the fact that there were few if any jobs, investment was drying up, trust and availability of the currency was drying up, and little if any safety net existed for the people of the era, a true level of malaise and “depression” set in and defined the era. This is of course denoted with regards to such factors as the stagnation of the labor markets and the ultimate hardship that individuals felt with regards to the outlook for “bettering their position” in life. Obviously this has a direct correlation to the extent to which the “American dream” was believed to be a reality. Due to the fact that the means of creating “American way of life” was all but removed, it became incumbent upon the government and political sectors of the system to intervene and express the will of the people to fix the problems that were systemically plaguing and beleaguering the system. Such a point of view is rather well represented within the famous film “It’s a Wonderful Life”(Already well known for his “Why We Fight” series during WWII, Frank Capra illustrates many of the sub-themes of the Great Depression within his famous film) by Frank Capra.
Although a complex plot is woven around different types of hardship that cannot be defined purely economically, it is the economic hardship that is the final straw in prompting the main character towards the course of action that he takes. The economic hardship and the social fabric are two elements that are extensively represented within the film and two elements that factored heavily into how the Great Depression was felt within the United States (Bernanke 4). Whereas the movies of the era generally focused upon an idyllic version of how men and women sought to choose the “right” no matter what situation they found themselves in, Capra instead focuses upon the fact that past decisions and hardships of fate prompted individuals such as Stewart’s character to engage choices that they otherwise would never have imagined. In short, the financial crisis and the hardships of the great depression served as a catalyst which helped to strip away much of the human dignity, desire for life, and hope for a reasonably positive future (Romer 30).
Whereas the current era is awash with social safety nets and a litany of different government programs that are aimed at providing a last resort to individuals who have found themselves on hard times, few if any safety nets or social programs existed during the Great Depression. Although it is true that Franklin D. Roosevelt’s New Deal helped to put a great many people to work and provide funding for infrastructure repair and development, such a discussion, or references to it, are not mentioned within Capra’s “It’s a Wonderful Life” (Silber 22). Instead, the safety net that is focused upon the most is the power that friends and family can have in helping to put a person back on their feet and encouraging a level of equity and fairness in a life that might have otherwise been something of a disaster (Bernanke 12). As a direct result of the stagnancy and despair that permeated each and every sector of the life that was portrayed, Jimmy Stewart’s character makes a reasonable and understandable decision to end his life as a function of escaping such a circular experience of hardship, failure, and loss.
Interestingly, even though these periods in economic and social/political history are quite dissimilar from one another, one similarity helps them to be comparable; the desire and ability of the individual citizen to take risks. Illustrated both with respect to the risk taking activities that individuals engaged in as a hopes of increasing their fortunes during the Industrial Revolution and the increased levels of risk that were accepted as a fact of life with regards to making ends meet and providing for one’s family during the Great Depression, the drive to survive and the will to increase the resources that the individual has at his/her disposal is not only evidence of the American Dream but the human spirit.