Nine Present-day Business Miscreants Exposed

In the world of business, there have been numerous instances of corporate misconduct that have left a lasting impact. Here, we delve into some notable examples from different eras and industries.

The Tobacco Industry's Disinformation Campaign

From the mid-1950s to the 1990s, large American tobacco corporations, such as Philip Morris and R.J. Reynolds, embarked on a disinformation campaign to mislead the public about the dangers of cigarette smoking. They manufactured doubt, secretly created and funded front organizations, funded junk science, and intensively lobbied against public health policies.

Union Carbide's Bhopal Disaster

In a tragic turn of events, Union Carbide, a petroleum corporation, was responsible for the Bhopal disaster in India in 1984. On the night of December 2-3, a deadly methyl isocyanate gas leak occurred from an insecticide plant operated by Union Carbide, killing nearly 4,000 people and causing serious injuries and illnesses to about half a million others. Union Carbide attempted to evade responsibility for decades and failed to remove toxic wastes from the plant site, contaminating the aquifers used for drinking water.

Enron's Accounting Fraud and Arthur Andersen's Conviction

In the realm of energy, Enron Corporation, a major American energy company, declared bankruptcy in December 2001 due to years of accounting fraud. Arthur Andersen, one of the five largest American accounting firms, acted as Enron's auditor and later was convicted of obstruction of justice.

Exxon's Climate Change Denial

Exxon, another petroleum corporation, began warning its executives of the reality and dangers of global warming and climate change in the 1960s. However, in the late 1980s, Exxon joined the Global Climate Coalition to convince the public and government officials that global warming was not real or caused by humans.

FTX's Collapse and Sam Bankman-Fried's Conviction

More recently, the cryptocurrency sector has faced its own scandals. FTX Trading Ltd., a cryptocurrency derivatives platform, collapsed in November 2022 due to the dependence of its sister company, Alameda Research, on FTX funds. The relationship between FTX and Alameda Research was dependent on the FTX Token (FTT), of which Alameda would be the principal buyer.

Sam Bankman-Fried, founder of FTX Trading Ltd., was indicted and arrested in December 2022 on several criminal and civil charges, including securities fraud, money laundering, campaign finance violations, and foreign bribery. In October 2023, Sam Bankman-Fried was convicted on seven counts of fraud and conspiracy and was sentenced to 25 years in prison several months later. It was also revealed that at least $10 billion in customer funds disappeared during the collapse of FTX Trading Ltd.

BP's Deepwater Horizon Oil Spill

In the largest marine oil spill in history, British Petroleum (BP) was ultimately responsible for the Deepwater Horizon oil spill in the Gulf of Mexico in 2010. The oil rig, owned and operated by Transocean and leased by BP, exploded and sank, killing 11 workers and causing oil to spew for several months, amounting to at least three million barrels. BP faced criminal charges and fines amounting to $4.5 billion and also paid $20.8 billion in damages.

Tobacco Companies' Legal Consequences

In the 1990s, the largest American tobacco corporations were successfully sued by the attorneys general of 46 states to recover Medicaid and other costs incurred by the states in caring for persons with smoking-related illnesses.

A Changing Landscape

These examples serve as a reminder of the importance of corporate responsibility and the consequences that can arise from misconduct. As the business landscape continues to evolve, it is crucial for corporations to prioritise transparency, honesty, and accountability to maintain public trust and avoid similar scandals.