Contemporary Corporate Corruption

  • Event: Tobacco Industry

    Big tobacco manufacturers deny that smoking tobacco is harmful.
  • Period: to

    Timeline of Contemporary Corporate Corruption

  • Event: Automobile Safety

    Congressional hearings revealed that automobile makers were making customers pay extra for safety features like seatbelts.
  • Arts and Humanities: Automobile Safety

    Ralph Nader's book "Unsafe at Any Speed" is published. The book calls out automobile manufacturers for their failure to make cars safe because they don't want to spend the extra money.
  • Impact: Automobile Safety

    Congress passes the National Traffic and Motor Vehicle Safety Act of 1966.
  • Event: The Silkwood Incident

    Karen Silkwood, a worker at the Kerr-McGee plutonium plant, complains about the lack of health and safety regulations after she finds her home has been contaminated with plutonium.
  • Event: The Silkwood Incident

    Karen Silkwood was killed in a car accident under suspicious circumstances.
  • Impact: The Silkwood Incident

    The Kerr-McGee plutonium plant is closed after the controversy surrounding the mysterious death of Karen Silkwood.
  • Event: Savings and Loan Crisis

    Banks and Savings and Loans were put under pressure after the federal reserve raises rates.
  • Impact: Savings and Loan Crisis

    Congress passes the Garn-St. Germain Depository Institutions Act to take pressure off of banks and Savings and Loans.
  • Event: ZZZZ Best

    16-year-old Barry Minkow starts a carpet cleaning business called ZZZZ Best, a disguised Ponzi-style scheme.
  • Arts and Humanities: The Silkwood Incident

    "Silkwood," a movie drama about the life and mysterious death of Karen Silkwood, was released.
  • Event: Savings and Loan Crisis

    When oil prices dropped, banks reported false numbers, making it seem like they were more secure than they were in actuality.
  • Event: ZZZZ Best

    Barry Minkow resigned from his position as CEO at ZZZZ Best when an investigation revealed fake clients.
  • Impact: ZZZZ Best

    Barry Minkow sentenced to prison for fraud in the ZZZZ Best scheme.
  • Impact: Savings and Loan Crisis

    Congress passes the Financial Institutions Reform Recovery and Enforcement Act to end the Savings and Loan Crisis.
  • Event: Worldcom

    Worldcom starts to monopolize the local telecommunications industry.
  • Event: Tobacco Industry

    Jeffrey Wigand blew the whistle on the tobacco industry in a 60 Minutes interview, claiming that he was told to keep quiet about the harmful effects of tobacco on smokers. Tobacco Industry Sources:
    + Nolo - “Tobacco Litigation: History & Recent Developments” by Kathleen Michon
    + “Big Tobacco finally tells the truth in court-ordered ad campaign” by Maggie Fox, 11/27/2017
    + Vanity Fair - “The Man Who Knew Too Much” by Marie Brenner May 1996
  • Impact: Worldcom

    Congress passes the Telecommunications Act to prevent the monopolization of the telecom industry. Worldcom Sources:
    + PBS - “The Worldcom Wall Street Connection” https://www.pbs.org/wgbh/pages/frontline/shows/wallstreet/wcom/cron.html
    + The Balance - “The Worldcom Scandal Explained” by Joshua Kennon, 5/20/21 https://www.thebalance.com/worldcom-s-magic-trick-356121
  • Event: Archer Daniels

    Archer Daniels Midland Co. was caught in a price-fixing scheme. They were trying to fix the price of lysine, a type of amino acid used in protein biosynthesis.
  • Impact: Archer Daniels

    Three higher-ups in the company were sentenced to prison: Michael Andreas, Terrence Wilson, and Mark Whitacre.
  • Impact: Tobacco Industry

    The Master Settlement Agreement is put into place, putting restrictions on the tobacco industry.
  • Arts and Humanities: Tobacco Industry

    "The Insider," a movie drama about Jeffrey Wigand's whistleblowing and the aftermath of it, was released.
  • Impact: Tobacco Industry

    The Phillip Morris tobacco company had to pay $51.5 million because it was found that the company did nothing to warn customers about nicotine addiction.
  • Event: Worldcom

    Through false accounting, Worldcom fakes an increase in profits.
  • Event: Enron

    Sherron Watkins, the former vice president of Enron, whistle-blew on the company.
  • Event: Enron

    The USC launches an investigation into Enron to find corruption.
  • Event: Worldcom

    Worldcom's internal audit unit found that the company was lying about and overstating its assets.
  • Impact: Enron

    Congress passed the Sarbanes-Oxley Act, which was designed to prevent corporate fraud, in response to the Enron scandal.
  • Arts and Humanities: Enron

    "Enron: The Smartest Guys in the Room," a documentary movie about the Enron scandal, was released.
  • Impact: Worldcom

    Bernard Ebbers, the former CEO of Worldcom, was sentenced to 25 years in prison for investor fraud.
  • Impact: Enron

    Jeffrey Skilling, the former CEO of Enron, was sentenced to 24 years in prison for taking part in the Enron scandal.
  • Arts and Humanities: Worldcom

    The television series "American Greed" did an episode on the corruption of Worldcom, entitled "Inside the Worldcom Scam."
  • Impact: Tobacco Industry

    The CDC launched an anti-smoking campaign that displayed the very real effects of tobacco that the big tobacco corporations wanted to keep secret.
  • Impact: Enron

    Jeffrey Skilling was banned by the federal court from ever again holding a high-ranking or executive position at a publicly owned company.
  • Event: Volkswagen Emissions

    Volkswagen was found to have put "defeat devices" in the engines of diesel vehicles they manufactured in order to cheat on carbon emissions tests.
  • Event: Apple Obsolescence

    Apple faced a lawsuit for the planned obsolescence of its devices. Allegedly, they planned for older devices to deteriorate so that customers would be forced to purchase newer products. Apple Obsolescence Sources:
    + US PIRG - “Right To Repair” https://uspirg.org/feature/usp/right-repair
    + Forbes - “On Apple’s ‘Batterygate’: Why Settling For $500-Million Is The Wrong Move.” by Vianney Vaute, 3/10/20
  • Event: Basketball Bribery

    Allegations and evidence arise that teams in the NCAA were bribing students with extra pay in order to recruit players for their basketball teams.
  • Impact: Apple Obsolescence

    State legislatures start introducing Right to Repair laws that would prevent planned obsolescence from occuring.
  • Impact: Basketball Bribery

    The basketball coach at USC, Tony Bland, was fired for playing a large role in the basketball bribery scandal.
  • Impact: Volkswagen Emissions

    Rupert Stadler, the former CEO of Audi, was arrested for playing a significant part in the Volkswagen emissions scandal.
  • Impact: Apple Obsolescence

    Apple agreed to pay $500 million to settle the planned obsolescence lawsuit.
  • Event: Luckin Coffee

    The popular Chinese coffee chain, Luckin Coffee, debuted in the NASDAQ stock market.
  • Impact: Luckin Coffee

    The Senate passed a bill that restricts Chinese companies from earning money off of US markets.
  • Event: Luckin Coffee

    The COO of Luckin Coffee was found to have overstated the company's sales for the year of 2019 by about $310 million.
  • Impact: Apple Obsolescence

    As of 2021, 40 states have introduced Right to Repair laws or have active bills supporting it.

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