Individual Assignment: Ethics of Penn Square Bank and the Dow Corning Bankruptcy

 

Resources: This week’s Electronic Reserve Readings

Agree to your Week 5 Learning Team Charter

Conduct additional research, and then answer each question in two 350- to 700-word responses:

 

Penn Square Bank: What were the ethical pressures on the firm concerning documentation, credit extension, and revenue recognition that lead to the final collapse? What should have been done to reduce or offset these pressures?

 

Dow Corning Bankruptcy: What were the business’ ethical challenges involved in filing bankruptcy for Dow Corning? Analyze the actions of the two parent companies, Dow and Corning, that represent the largest ethical issues.

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