Cases against Wesfarmers with critics

Wesfarmers has been involved in accounting scandal in 2016. This has been caused by the workers at
Target which has led to a loss of 900 local jobs (Chris Sheedy, CA Today 2016). There has been a
problem in Wesfarmers in September 2011, Peck is the owner of the company for 20 years has quit along
with many staffs because the culture of working was terrible. (News.com.au 2016). Many workers have
left because there is no motivation and leadership. Rogers stay in the business just for 18 month however
he decided to leave for personal reason. (News.com.au 2016). This demonstrates that he cant handle his
private life and personal life. Rogers was replaced by Machin who was the director of store development
and operation at Coles. (News.com.au 2016). It was said that Machin has no proven leadership
experience and thus he has quit after the scandal. (News.com.au 2016). The HR manager has not selected
the right person for the right job. Because three directors have quit, this has shown that they cannot cope
with the culture, cannot handle stress, no emotional intelligence and no working experience.

The suppliers have committed fraud that was unethical and has increased Targets first half earnings
which were 5.7 per cent from $ 70 m to $74m.(Sydney Morning Herald 2016) .Ten Target staffs were
involved in the accounting scandal because they felt pressure at divisional level. (Retail Gazette Daily
News 2016) .Mr Goyder said that the financial performance of business was declining because of
pressure, workload and stress. This has led to these workers to take this drastic step. However, severe
action has been taken against these workers which have led to them to unemployment, loss of reputation
and the ability of not gaining a decent job in the market.

Wesfarmers has appointed Ernst&Young the external auditors find out that $18.1 but did not meet with
the accounting policies and they have carried out an internal arrangement for the supplier. (Australian
Business Review 2016) The allegation that 30 offshore suppliers has made is that after a request if the
money flow back to the suppliers via higher prices in the second half. (Chris Sheedy, CA Today 2016)
This will be the purpose of the scheme to boost up their first half earnings. They have artificially boosted
up the earning.

Enron was known one of the five largest audit and accountancy partnership. It was revealed in November
2001 that the top executive has committed fraud. Enrons earning has inflated.(CNN library 2016) It was
unethical when they found that the people who occupied higher position in Enron have committed fraud
jus for the sake of getting to get additional source of earning to satisfy them. They have sold their
integrity and honesty for the sake of little money can be earned by hardworking.
Johnson&Johnson was a multinational pharmacy group. The scandal was happened when they come to
know that tampering occurred once the product reached the shelves. Johnson&Johnson knew that they are
not responsible for the tampering of the product. But they have taken the safety of general public and
have removed the entire product on the market. Johnson&Johnson come up with new campaign relaunch
the product. (THE TYLENOL CRISIS, 1982)

The cases of Enron and Johnson& Johnson have demonstrated that there is no ethics, integrity and
honesty to fulfill their responsibility and duties as the senior of the companies.