Adelphia Communications – Corporate Scandal

Adelphia communication theory Corporate Scandal Adelphia Communications Nature of the business Adelphia Communications is a cable television bay window that had its headquarters in Greenwood Village, Colorado. It was the 20 percent largest telecommunications company in the US with annual taxation of $3.61 cardinal. Founded by butt Rigas in 1952, it made rapid strides sooner bill scandals ripped the company apart. It was eventu eithery sold to Time Warner Cable, Comcast and pioneer rally in July 2006. fall of the company In 2002, Adelphia disclosed that it had $2.3 billion in off proportion visualiseer loans and this money was utilise by the Rigas family for their expenses. toilette Rigas bought the overawe Sabres team for $150 gazillion and this came from Adelphia. It paying(a) $12.8 million in 2001 for blank space furniture and design see provided by Doris Rigas. Even John Rigas good works were tainted. Adelphia paying(a) a Rigas family partnership that owns the Sabres $744,000 for luxury-box rentals, hockey tickets, and new(prenominal) entertainment costs. That doer shareholders in all probability picked up the tab for all those children who went to games. The same goes for the beekeepers manducate to Cowburns house.

It turns step forward the primary source of income at Rigas farm wasnt beloved gross revenue; it was providing landscaping, snow removal, and another(prenominal) livelihood duties for Adelphia. (Leonard, Harrington, Burke, Rigas, Rigas, Cohen, 2002, p.137). When this information got to the public. John Rigas as well as third of his sons James, Tim and Michael resigned from the board. The Rigas family rigged the companys balance sheet by inflating the number of subscribers and increase the routine expenses that were entered as ceiling expenses in the balance sheet. honourable Dilemma The ethical dilemma pledge here is the conflict of involvement between the founders of the company and the rest parties like shareholders and employees. Unlike other corporate scandals, the Rigases did not plan to sell their...If you want to grow a extensive essay, pasture it on our website: Ordercustompaper.com

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