This document discusses several examples of corporate social responsibility and scandals: - Toms Shoes donates a pair of shoes for each pair sold, using social responsibility as a business strategy. - Russel Metals invests in community projects and environmental conservation. - Toshiba overstated earnings by $2 billion in an accounting scandal, misleading investors. The CEO resigned and the company is under new management. - Anchoring and availability biases contributed to Toshiba's poor decision to overstate earnings, relying on irrelevant data and emphasizing recent large numbers.

1. Taihessa Lee Project 2
by Taihessa Lee
Submission dat e : 02- Dec- 2018 11:4 4 PM (UT C- 0500)
Submission ID: 104 9288529
File name : T aihessa_Lee_Pro ject_2.do c (184 K)
Word count : 2921
Charact e r count : 15921

2. 32%
SIMILARIT Y INDEX
26%
INT ERNET SOURCES
1%
PUBLICAT IONS

3. 29%
ST UDENT PAPERS
1 8%
2 5%
3 3%
4 2%
5 2%
6 2%
7 1%
8 1%
Taihessa Lee Project 2
ORIGINALITY REPORT
PRIMARY SOURCES
Submitted to Sohar University
St udent Paper
slideplayer.com
Int ernet Source
Submitted to Pennsylvania State System of
Higher Education
St udent Paper

4. Submitted to School of Business and
Management ITB
St udent Paper
Submitted to University of Maryland, University
College
St udent Paper
slidegur.com
Int ernet Source
Submitted to Johnson and Wales University
St udent Paper
Submitted to Eastern Mediterranean University
St udent Paper
9 1%
10 1%
11 1%
12 1%
13 1%
14 1%
15 <1%
16 <1%

5. 17 <1%
18 <1%
19 <1%
Submitted to Colorado State University, Global
Campus
St udent Paper
journal.um.ac.id
Int ernet Source
Submitted to Southern Cross University
St udent Paper
Submitted to University of Bridgeport
St udent Paper
www.marketing91.com
Int ernet Source
herkules.oulu.fi
Int ernet Source
Submitted to CSU, San Francisco State
University
St udent Paper
icist.if.ktu.lt
Int ernet Source
Submitted to Coventry University

6. St udent Paper
www.theseus.fi
Int ernet Source
www.coursehero.com
Int ernet Source
Exclude quo tes Of f
Exclude biblio graphy Of f
Exclude matches Of f
Taihessa Lee Project 2by Taihessa LeeTaihessa Lee Project
2ORIGINALITY REPORTPRIMARY SOURCES
Post 1
When considering the story of Tom's Shoes, research an
organization of interest on the Internet. Describe how this
organization promotes or contributes to social responsibility and
awareness. How has this helped or hindered both the
organization and those the organization is helping?
I chose State Employees Credit Union (SECU) as my
organization of interest. I have been employed with this
organization for years and have firsthand knowledge of social
responsibility and social awareness efforts. First, we are not-
for-profit and owned by our accountholders also known as
members. Most financial institutions are owned by a limited
group of stakeholders or shareholders. However, our members
are our stakeholders and there is no limit to the number of
members who can join. As such, our business revenue is given
back to our accountholders in the form of dividend deposits,
lower interest rates to borrow and little to no fees on deposit

7. accounts. This is the most significant way SECU shows social
responsibility, by extending a stake in its union to anyone in the
state and offering financial advantages not offered in banks.
Second, SECU employees have a shared value of education. We
take ownership of the responsibility to educate our members and
those in the community to support better financial decisions and
enable financial stability. We regularly visit high schools and
colleges to educate the youth. Third, SECU partners with United
Way every year in October to raise as much as we can to help
the communities we serve. Employees participate in various
fundraising events resulting in a $40k donation this past
October. Lastly, SECU gives employees 8 hours of volunteer
leave each quarter to ensure social responsibility efforts.
These efforts have helped in my opinion to build a large
membership base that trusts SECU and its employees.
Consider corporate scandals over the past several years.
Research the Internet and consider a corporate scandal of
Interest. Explain and describe the moral and ethical implications
from this scandal. What could have been done differently?
Where is the organization today- still thriving or not? Where are
the executives today who were involved?
I chose Wells Fargo for its recent scandal, opening deposit
accounts and credit card accounts in consumer’s names,
unbeknownst to the consumer, all in efforts to meet sales goals.
There were many moral and ethical implications from this
scandal. First, opening new credit card accounts causes
inaccuracies on consumer’s credit reports. This could possibly
affect a consumer’s ability to finance a car or a home. Also
opening unused deposit accounts can cause service fees on those
accounts that are not being used. Unpaid service fees on
accounts that should have never been opened, turn into a
charged off accounts for Wells Fargo and the inability for the
consumer to open accounts elsewhere until it’s paid. Morally
and ethically bankers should always sell things that have true
value to consumers. Product pushing, is when a salesperson
forces a product on a consumer based off of their desire to sell

8. and not on the desire to bring the consumer true value. This is a
highly unethical practice in sales. Elderly or inexperienced
consumers may be subject to these types of sales. This opens up
the practice of elder abuse which is also highly unethical.
Wells Fargo is a very large, very old financial institution.
During the 2008 rescission, Wells Fargo was the only large
financial institution that did not require bail out money due to
its conservative lending practices. They would have done well
to hold on to this history of security and stability by ensuring to
be more socially responsible and reviewing sales goals. Since
this scandal, the company has a new CEO and they run regular
ads basically begging for consumers to forgive them and trust
them again. I’m almost certain they are not the thriving bank
they once were.
Explain how a specific decision bias mentioned in this chapter
led to poor decision making by a firm.
Anchoring and adjustment bias takes place when an
organization makes substantial decisions on insignificant data
(Chapter 10 Leading Ethical Organization, p.333). Availability
bias takes place when more recent data incorrectly overshadows
the significance of less recent data (Chapter 10 Leading Ethical
Organization, p.334).
Chapter 10 Leading Ethical Organization. (2014). The
University of Minnesota. Retrieved December 5, 2018 from:
https://learn.umuc.edu/d2l/le/content/331272/viewContent/1324
7367/View
Post 2
Toms Shoe runs one of the most successful social
responsibilities in modern business strategies. The company has
managed to use social responsibility as a competitive strategy
that runs dry its competitors. Its decision to donate a pair of
shoes to the needy for each pair bought is such a unique
strategic social responsibility. Led by Blake Mycoskie, the
company witnessed a great impact in social contribution to the

9. developing markets. This however turned into a profitable
strategy for the company as it gave purpose and sense to buy
from Toms Shoes (Mastering Strategic Management, 2016). In
the same manner, there are other companies that have heavily
invested in promoting the social welfare of their communities
and markets. Russel Metals have an undeniable impact on
society. The company has invested in social responsibility as a
way of giving back to society through corporate citizens,
environmental conservations, and Russel community projects.
The company undertakes donations and funding of community-
based initiatives throughout North America (Mooser, 2015).
Such include employee volunteerism where it facilitates its
employees to undertake voluntary construction services with its
beneficiaries paying no penny. The company has also taken the
responsibility of reclaiming amicable environment by averting
pollution and degradation it causes. Through its Carbon
Disclosure Project, the company works with local communities
to set environmentally friendly projects to reduce any form of
pollution, internal and external (Lindgreen, & Swaen, 2010).
The year 2015 saw accounts of corporate scandals that rocked
the market. An example of such corporate scandal is the
Toshiba Scandal valued at $2 billion. This was associated with
an old-fashion accounting that had the electronic giant overrate
its revenues above its actual earnings for a series of years
proceeding. This gave a wrong impression of the company’s
earnings thereby misleading investors and shareholders for the
ill benefit of the corporate managers (Russell, 2015). The
company’s CEO Hisao Tanaka among other managers were
found culpable hence leading to his resignation. The culprits
took advantage of the company’s ill internal culture that had its
management’s decision final and unchangeable. They hence
acted in their self-interest to give a wrong impression of the
company above its actual earnings. The company reports
postponed losses incurred to avoid recording negative
statements. Even though Toshiba suffered greatly from ill-

10. advised decisions by its managers, the company has in recent
time depicted positive progress. It is now under new
management after sacking its former management. Instead of
lying about its earnings, the company should have given the real
results about its earnings. It would have saved itself from
potential investors leaving. The decision had immense ethical
and moral implication of the company. It faced legal
compulsory tussle between investors and other shareholders.
This led to the board’s decision to sack its top management
involved and compensate affected investors (Melé, Rosanas, &
Fontrodona, 2017).
Decision biases limit the logical rationality of a decision.
Toshiba company scandal was affected by anchoring and
availability biases in their decision to overrate their earnings
(Mastering Strategic Management, 2016). Anchoring bias
applied when the company objectively cooked figures and
provided incorrect annual statements that were irrelevant and
not supportive of their real earnings. This means data on
company earnings were not in any way related to their actual
earnings. To blindfold investors further, the management
faulted availability bias whereby carrying forward its larger
revenues, capital expenditures, and deleted losses from its
statements. The result was an unrealistic financial statement
that overrated the company’s earnings with over $2 billion. This
cost the company its reputation, investment upon discovery.
References
Lindgreen, A., & Swaen, V. (2010). Corporate social
responsibility. International Journal of Management Reviews,
12(1), 1-7.
Mastering Strategic Management. (2016). Mastering strategy.
Washington, D.C.: The Saylor Foundation.
Melé, D., Rosanas, J. M., & Fontrodona, J. (2017). Ethics in

11. finance and accounting: Editorial introduction. Journal of
Business Ethics, 140(4), 609-613.
Mooser, Sherri (April 6, 2015). Russel Metals Supports Higher
Education. News Wire, Online Source. Retrieved from >
https://www.newswire.ca/news-releases/russel-metals-supports-
higher-education-517424411.html > and <
https://www.russelmetals.com/en/AboutRusselMetals/Pages/Cor
porate-and-Social-Responsibility.aspx >
Russell, G. W. (2015). Will Toshiba's Scandal Bring About the
Change Needed in Corporate Governance?. GAA Accounting,
May, 10.