"With the avalanche of corporate accounting scandals that have rocked the markets recently, it's getting hard to keep track of them all--but our Corporate Scandal Sheet does the job," boasts Forbes magazine. "Here we'll follow accounting imbroglios only--avoiding insider-trading allegations like those plaguing ImClone, since chronicling every corporate transgression would simply be impractical."
In 1997, the wife of Phillip Bonaffini died from an infection she contracted during cardiac surgery at Bridgeport Hospital. Another patient, Eunice Babcock, was left wheelchair-bound due to a staphylococcus infection that she contracted during surgery at the same hospital. The hospital settled the cases out of court by paying Bonaffini and Babcock an undisclosed sum in exchange for signed confidentiality agreements.
The White House allegedly threatened a Judicial Watch process server with arrest while he was trying to provide legal notification of a lawsuit to Vice President Dick Cheney. The conservative organization Judicial Watch has brought a lawsuit against Cheney for fraudulent accounting practices at Halliburton Corporation while Cheney was the company's chief executive.
The APCO PR firm, which is currently representing WorldCom in its ongoing bankruptcy scandal, has hired Tim Croasdaile as a senior vice president. Croasdaile formerly chaired the National Investor Relations Institute's ethics committee.
In a feature article "Restoring Trust," PR Week talked to PR experts about restoring confidence in the business world. "American corporations have to understand that the best thing they can do right now is to communicate: completely, honestly, transparently, and often," Notre Dame University business professor James O'Rourke told PR Week. "If more CEOs sounded like Defense Secretary Donald Rumsfeld in their briefings, we'd all be better off. If things aren't good, say so and explain what you're going to do about it.
The Center for Science in the Public Interest (CSPI) is calling for bioethics institutions and journals to disclose their financial relationships with the biotech industry. So far, the request has mostly fallen on deaf ears. "The industry's increasing recruitment of bioethicists has been widely debated, as has the scope of the contributions," notes Hal Cohen. "Most bioethics institutions don't publish such statistics, leaving the public to draw its own conclusions about conflicts of interest.
"For all the talk of corporate scandal, one leading proposal for change -- tightening the rules on stock options -- was brushed aside in Congress this week, thanks in part to a powerful business lobbying coalition that has long fought to protect these rich pay packages. ...
"Investors who have watched their nest eggs melt away would be shocked to know that former executives of companies involved in some of the USA's largest cases of corporate malfeasance -- Xerox, Waste Management and Sunbeam -- still serve as senior executives and directors at public companies," writes Matt Krantz. "Some even sit on audit committees, acting as watchdogs against accounting deceit. In one case, an ex-president's involvement with alleged fraud isn't even disclosed in his current employer's regulatory filings."
The news media have criticized the tangled finances of companies like Enron and WorldCom, but Howard Kurtz notes that many of them are engaged in similar deals themselves. For example: