1. CA executives involved in the accounting scandal were not accused of
reporting bogus contracts or hiding major problems in the business. The
contracts that were backdated were real sales agreements. Was this
really a crime? Should the individuals have been punished so harshly?
Yes, it was stated that if Honeycutt will not take the offer and the Computer Associates executives threatened that they will wrongly harm
CSC and was proven guilty. It is indeed a serious offense and the
individuals will be punished as what the court agreed according to their
cases.
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2. In December 2004, CA appointed Patrick J. Gnazzo as senior chief
compliance officer to demonstrate to the government and shareholders
that the firm would take measures to operate ethically. Gnazzo served in
this role at United Technologies for 10 years and had been a member of
the board of directors of the Ethics Officers Association. Gnazzo
reported to a new executive vice president and general counsel at CA as well as the
board’s Compliance Committee. Outline some of the actions Gnazzo might
have taken in his first six months on the job.
In the first six months on the job of Patrick J. Gnazzo, as appointed senior chief compliance officer, he should be the model to the right things for the good of their company he should ensure the ethical procedures are consistently adhered throughout the organization. It is said that Gnazzo
has to demonstrate to the government and shareholders that the firm
would take measures to operate ethically, and then he has to do
something or many things for his role.
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3. John Swainson, a 26-year veteran of IBM, joined CA in November 2004
as CEO and president. His first few months with the firm were
rough—major customers threatened to dump the firm; some products were
behind schedule and were of poor quality; executives had to be fired for
breaking company rules; accountants continued to find past mistakes;
and many newly hired executives had to be brought on board. What sort of
leadership could he have demonstrated to show that he was determined to
avoid future scandals at CA?
A great leader has to take initiative, that’s the possible thing that
John Swainson demonstrated to show that he was determined to avoid
future scandals at CA.
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4. CA has been hit with numerous scandals since the late 1990s. These
scandals raise questions about how successful the firm might have been
if not for the amount of time its executives had to spend on these
distractions. Compare the revenue growth and stock price of CA to that
of some of its competitors over the time period 2004–2008. (Be sure to
use CA’s
corrected figures!) Can you detect any impact of these scandals on CA’s
performance? What else might explain the difference in performance?
There is a great impact of those scandals on CA’s performance, for how
it will recover and improve while it is undergoing big problems and
issues that taking it drive down. The thing that might explain the
difference in performance is all about what has done by the executive of
the business.
