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10 Other shocking corporate abuses



By the middle of the 19th century, America had selectively issued articles of incorporation that explain a company's mission. Their deeds were changed or revoked by the governments of the states where they had their headquarters . The charters were judged on how well the business practices of a company illustrate its stated mission.

In the case of Citizens United v. FEC (Federal Election Commission) of 2010, the US Supreme Court ruled that the company's political spending was five to four. The "corporate language" was protected under the first amendment to the US Constitution, just as one voter would. Not all countries have such lawsuits, but Nobel laureate Joseph Stiglitz says that trades that enable a global economy often benefit companies at the expense of their employees. Not all companies listed on this list are from the same country or historical period. All have purposely taken advantage of either consumers, workers or the environment for their financial gain.

1
0th Facebook Enables Cambridge Analytica to Access User Data

Facebook's preference for irrevocably releasing user data was explained in one of our previous lists. As noted in this list, Company executives agree that when creating an account, users agree to the use of their data by Facebook. Basically, the service is free because its users – or rather its value as a captive consumer for various advertisers – are the product of the company. When Facebook allowed British consulting firm Cambridge Analytica to access users' data, its actions were not in contradiction to its previous practices. However, Cambridge Analytica is being studied both in the US and in the UK.

The investigation was initiated to determine if the company used the data of 87 million Facebook users for targeted propaganda to influence the 2016 US presidential election. Facebook did not play a role in creating the propaganda. However, Sheryl Sandberg, Chief Operating Officer of Facebook, admitted that Facebook executives knew that Cambridge Analytica handled data incorrectly. They waived an exam and accepted Cambridge Analytica's claim to have erased the erroneous data. Facebook has more than an unfavorable affiliation with the US 2016 elections. In his investigation, US Special Adviser Robert Mueller revealed that Russia had used Facebook and other electronic sources to create propaganda that might have influenced the election. Calexit called for an online group The secession of California from the United States is an example of such Russian propaganda.

. 9 Faulty equipment causes the oil spill in the UK

In 2010, the Deepwater Horizon oil rig exploded in the Gulf of Mexico. The explosion killed 11 people and the oil leak caused long-term damage to the Gulf of Mexico and its wildlife. The rig was owned by the offshore drilling company Transocean and and was leased by the oil company British Petroleum (BP) . Although the executives of British Petroleum took responsibility for the oil spill and conducted an investigation, the company issued a public statement stating that its contractors are also responsible. The investigation revealed that eight safety systems had failed on the rig. The cement did not form a seal, allowing oil and gas to escape. The mechanical valves in the pipeline to the surface also failed and made possible further leaks.

The results of the pressure tests to determine if the well was working properly were misinterpreted. The valve in the blowout preventer emptied mud and gas into the rig. The blowout preventer did not close when its valves were broken because the preventer had defective batteries. Instead of diverting the mud and gas from the derrick, the crew diverted it to a device designed to separate the gas from the mud. The material in the unit ran over and gas filled the rig. The gas alarm did not work. Lastly (and perhaps most obviously), the leak was not discovered in time. A federal judge ruled that British Petroleum "gross negligence" caused the oil spill. As evidence of the catastrophe of a corporation, the American brand of Detergents Dawn offers a nine-part documentary in which animal protection officers first demonstrated that Dawn dishwashers used to clean the soap from animals affected by the oil spill.

. 8 Massey Energy's Security Breaches Cause Explosion of Coal Mine

The 2010 Mine Explosion at the Massey Energy Company killed 29 workers. In 2015, Chief Executive Officer Don Blankenship was convicted of plotting against security laws at his West Virginia mine. Records on the safety of federal mines have revealed that Blankenship has endangered the safety of workers in all its mines. In 2009, the injury rates of all 10 Blankenship mines were above the national average of the US and they received 2,400 citations.

The violations of Massey Energy include improper ventilation of methane gas and excessive coal dust. Although Blankenship has served a year and a half in prison, he refuses responsibility for the mine blast. Blakenship's belief in his own unprotected reputation is so strong that he attempted to run for as a third party candidate for the US Senate in 2018 and represent West Virginia.

. 7 Dish Network Conducts Illegal Telephone Marketing Calls

From May 2010 to August 2011, Dish Network sent Robocalls to 18,066 telephone numbers of the National Do Not Call Registry . The National Do Not Call Registry is a list of consumers' mobile phone numbers in the United States that have stated that they prohibit robocalls.

By calling consumers whose numbers were on this list, Dish Network violated the Telephone Consumer Protection Act . Perhaps the most shocking part of this corporate abuse incident was the amount of the penalty. A judge in North Carolina called on the company to pay a fine of $ 280 million . Individual consumers were entitled to comparisons up to $ 1,200.

. 6 Enron causes blackouts in California

In 2001, Californians suffered blackouts for six consecutive days. At the time, nobody knew that the power outages were the work of an energy company, Enron. Enron executives have intentionally caused energy shortages or bottlenecks in the power grids. The company ignored government price caps and increased the energy price to earn profits. Enron bought electricity for $ 250 per megawatt hour, the maximum allowable price in California, and then sold it to five times the original purchase price to other North Pacific countries. Enron overestimated its customers' energy consumption and flooded the transmission lines to allow state-owned energy companies to pay Enron to lower their usage rates. In an internal memo the company's lawyers wrote : "This strategy does not seem to pose any problems other than the risk of publicity stemming from the fact that such exports may explain California's over-the-counter [blackout]. "

Ultimately, the strategy was also associated with a legal risk. During a criminal investigation in 2002, the accounting firm Arthur Anderson LLP announced that it had destroyed examinations at the request of Enron. Kenneth Lay and Jeff Skilling, both of whom served as the company's Chief Executive Officer in 2001, were charged. Lay was charged with eleven charges, including conspiracy, fraud, bank fraud, bank fraud and false statements. He died of a heart attack while waiting for the conviction. Skilling was convicted of conspiracy, fraud, insider trading and false statements. The name of the company today stands for corruption in companies in America.

. 5 Ranbaxy Sells Ineffective Generics

In 2013, executives at Ranbaxy, a subsidiary of Japanese company Daaichi Sankyo, pleaded guilty to selling adulterated drugs manufactured in India to US consumers. The company manufactures generic drugs that are sold at lower prices than brands.

His products include drugs for Alzheimer's, high blood pressure and herpes. In 2007, company executives admitted that they had deliberately sold drugs containing impurities to traders in America. Around 75 million pills had to be recalled. The court imposed a fine of $ 500 million. Luckily, as far as can be determined, no customers have suffered unwanted side effects from the impure pills.

. 4 Chinese dairy companies sell contaminated milk

In 2008, 300,000 Chinese babies became ill. 16 babies were diagnosed with painful kidney stones. Six of these sixteen babies died. The product that made her sick was one that was made for her, baby food. There is nothing in baby food that could make a child sick … unless the formula is not a formula at all.

22 Chinese dairy companies exported melamine-containing milk to reduce production costs. Melamine is a compound contained in adhesives, tableware, adhesives, molding compounds and flame retardants. As late as 2018, the dairy industry had not restored the trust of Chinese parents .

. 3 Distributing Company Distillers knows that thalidomide can cause disability

Between 1958 and 1961, many pregnant mothers were prescribed a medication to treat morning sickness. The drug was effective. Unfortunately, thalidomide had a serious side effect. The children of women who took the drug were born without arms, without legs, with short limbs and with networked fingers and toes. 10,000 "thalidomide babies" were born worldwide, and about half of them died. In his book Silent Shock: The Men Behind the Thalidomide Scandal Lawyer and journalist Michael Magazanik claims that executives of Distillers, the British company that sold and sold thalidomide, used the drug for six months marketed after they knew it was causing children with disabilities to be born. (Full disclosure: Magazanik represented the thalidomide baby Lynette Reed in her 2012 lawsuit against Distillers, which she won.)

The seller Hubert "Woody" Woodhouse, who worked at the Australian branch of Distillers during the sale of thalidomide, High-ranking officials were aware of Australian birth assistant William McBride's warnings before the end of 1961. McBride told high-ranking officials that the children of mothers who took the drug were born with disabilities. Woodhouse believed that the complaint was also forwarded to the company's UK headquarters. In 2013, Diageo, the British beverage company that already owns Distillers, paid $ 89 million to 100 Australian and New Zealand born thalidomide babies to settle a class action lawsuit.

. 2 Bechtel privatises water in Bolivia

From 1999 to 2000, citizens of Bolivia's third-largest city, Cochabamba, marched through the streets. They protested against the idea that affordable access to fresh water is not a human right. Unlike the other acts of corruption on this list, which are all business decisions, they were supported by the government. The Bolivian government was involved in the privatization that the Bolivian press called "The Water War."

Water is one of many resources that Bolivia has privatized to increase its economic growth. In 2000, the Bolivian government invited the American company Bechtel to buy the public municipal water supply SEMAPA. Bechtel demanded 50% more than SEMAPA, and the company eventually demanded municipal water supply. As the water in Cochabamba became cheaper and cheaper, the demonstrators ran across the streets of the city. Their efforts were successful . Eventually, Bechtel broke his contract and renegotiated SEMAPA, although the company demanded $ 50 million in compensation from the Bolivian government. Unfortunately, Bolivians are still struggling with water shortages, but they have provided a useful model for water rights protests around the world.

. 1 Theranos Markets A Product That Does not Exist

Elizabeth Holmes founded the technology company Theranos in 2003 when she was 19 and was leaving Stanford University. She told investors that her invention would enable patients to perform various reliable blood tests with a fingerstick needle. By 2007, her company had developed the Edison, a modification of a glue application robot. This prototype helped the company make investments of $ 9 billion. Unfortunately, despite the statements of Holmes, there was never a working model of the Edison.

Demonstrations for potential investors like Joe Biden have been rigged. Employees were instructed to covertly screen the blood samples of investors arriving at product demonstrations on other company equipment. By 2013, some employees, including chief scientist Ian Gibbons, expressed concerns about the inaccuracy of the company's blood tests. In 2014, Holmes told Fortune magazine that Edison had performed exactly 200 blood tests using fingerstick technology and will soon test 1,000. The claim was wrong. Markers for infectious diseases can not be detected without a large blood sample .

Holmes made inaccurate even the tests that Theranos was able to perform. Most of them were not performed on Edison, and the Theranos medical staff trained staff at Walgreens Theranos Wellness Center to [19659002] to perform venal blood sampling not fingersticks. In 2018, the US Department of Justice accused Holmes and her friend, Theranos president Sunny Balwani, of criminal fraud. The company was closed in the same year. Holmes and Balwani will face trial in 2020. Director Alex Gibney investigates the sudden success and disgraceful demise of Elizabeth Holmes in the HBO Documentation The Inventor: Looking for Blood in Silicon Valley.

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