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Waste Management Inc Scandal

Timeline created by middleton33 in Business
Event Date: Event Title: Event Description:
Dean buntrock small square Dean Buntrock Took Comand In the 1950's trash was usually collected by small private persons. In the year 1956 a Chicago area trash collection company was turned over to Dean Buntrock after the death of its previous owner. This is initially where Waster Management began its journey.
Waste cycle 1 small square Expanding the Business.. In the 1960's the production of garbage was rapidly growing. Dean Buntrock strategically expanded him business by buying other businesses within the Chicago and Wisconsin area. Also during this time he met up with Wayne Huizenga. They talked about possibility one day joining each other’s businesses together.
Dump site 2 small square Solid Waste Disposal Act The Solid Waste Disposal Act was passed in the year 1965. It was passed due to the public’s growing knowledge of safe and efficient waste removal. Waste removal companies were now required to meet new standards that included; hygiene, and safety levels of disposal sites. This increased the cost of expenses and ultimately of doing business.
Waste management master plan small square Joining of Forces In the year 1968 Dean Buntrock & Wayne Huizenga decided to join forces. They agreed to collaborate their businesses to become Waste Management Inc. In this year they also became officially incorporated.
Waste managment truck small square First Year of Operation The first year of operation for Waste Management Inc. was a successful year all around. They were located in Illinois, Wisconsin and Florida. At the end of this year their revenues totaled $5.5 million.
Goes public small square Waste Management Goes Public Waste Management went officially public in the year 1971. In this year they offered 320 000 shares. They then used the profits to launch one of the spectacular success stories in US history. Between the years 1971-1980 their revenue grew rapidly at 48% per year. In 1979 the earnings were almost 10% of sales!
Chemical waste small square Resource Conservation and Recovery Act In 1976, the Resource Conservation and Recovery Act was passed. It addressed the issues of toxins and chemical waste. The act in its self-scared off most of the smaller companies, but Waste Management took advantage of the situation. They began to rapidly enlarge their presence in the toxic field.
Indutry leader small square Industry Leader! In the year 1980 Waste Management had the largest number of toxic landfills. They then emerged as the industries leader.
Downward trend 1 small square Beginning of the End In 1992 Waste Management began to manipulate their financial records.
Arthur anderson small square Arthur Anderson In 1993 the Arthur Anderson firm was hired by Waste Management to review its financial records. For five years they helped Waste Management "Cook the Books". They conformed/ agreed to manipulate the accounting practices to show inflated earnings and to hide expenses.
Downward trend 2 small square Unraveling of Waste Management In mid-July of the year 1997, the new CEO of Waste Management ordered a review of the companies accounting practices. This ultimately led to the restatement of the company’s financial records.
Bomb small square Downfall Waste Management then acknowledged that it had misstated its earnings by $1.7 billion dollars. At the time, it was the largest restatement in corporate history. When the news became public the shareholders of Waste Management lost more than $6 billion dollars. Their stocks had plummeted more than 33%.
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