Ethics – Monday 6-9
Le-Nature, Inc. Case Study
Gregory Podlcuky, Chief Executive Officer and Founder of Le-Nature, a Pennsylvania soft drink company, was accused of fraudulent activity costing investors, venders, and lenders around $684 million between 2000 and 2006. Podlucky received over $800 million in financing by falsely overstating the company’s revenues. This cooking of the books made Le-Nature seem more successful than it truly was, prompting outsiders to invest in its growth. Podlucky spent most of this investment money on his lavish lifestyle though, instead of on his company.
Founded in 1992, and originally named Genesis Inc., Le-Nature was re-named in 2002 ...view middle of the document...
All of which she said she did under the orders from Mr. Podlucky.
When it comes to Tammy Andreycak, her ethical dilemma came down either doing the right thing, or most likely getting fired. This is a very common ethical issue. Your boss tells you to do something that goes against your ethical principles, or even goes against the law, and you must made a decision. Do you oblige by his wishes and break go against the things you believe in, or do you not, and risk getting fired? In this case, Tammy did as she was asked and committed fraud by producing fraudulent financial documents. Her poor decision to cook the books cost her 5 years in prison, 5 years probation, and a lifetime of regret to go along with a blemished record.
The fraudulent operations came to an end in October 2006 when Le-Nature was forced into bankruptcy after a judge said that financial fraud had most likely occurred.
When federal agents searched Le-Nature’s headquarters, they found a secret room that hid millions of dollars of valuables. The valuables included jewelry, watches and even a $1 million model train set. Also, a $10 million mansion was discovered that Podlucky had started to construct, but never finished.
What ethical theory most supports this case?
Egoism is the ethical theory that most supports this case. Everyone involved took the selfish road. They chose money and greed over the success of the company and it’s stakeholders. Cooking the books did not help anyone but themselves. Mr. Podlucky lived lavishly, while the company and it’s stakeholders, the banks who lent money, and investors all suffered the consequences of his...