Macro Economics

This paper will examine several companies and cases charged against them for fraudulent activities. Each company’s work ethics and financial integrity is analyzed as outlined in the text referred to at the end of the document.

American Samoa Garment Factory - Venus Hardy

Pipes flailing in the thick, moist air, mixed with the smell of human flesh struck by hollow tubes. The sounds of workers screaming drowned out the machine noises and scattering about, blood spattered everywhere, on the worktables, sewing machines, and clothing. Watch in awe as the next person was struck in the face with a broken piece of pipe. Their left eyeball rolled across the floor, another person, hit, teeth shattered and each person leans over and prays that he or she is not next.

“Guards at the garment factory were armed with plastic pipes. A fence encircled the compound with razor wire on some parts. A curfew was in place. Workers were malnourished, and some seamstresses stopped having menstrual cycles.” (http://www.seattlepi.nwsource.com 2005 retrieved February 15, 2008) “The women unknowingly participated in a $7 billion to $10 billion global industry of murky migration, forced labor and debt bondage.” (http://www.seattlepi.nwsource.com 2003 retrieved February 15, 2008) The concentration-like quarters crammed 36 people to a poorly ventilated, humid hallway lined by tiny bunk beds with half-inch mattresses. Bath facilities offered no privacy and broken toilets and the swimming pool was not filled with water, but garbage and rancid putrid green slime. (www.hawaiireporter.com 2002 retrieved February 15, 2008)

These are just some of the working conditions in the America Samoa Garment Factory owned by Kil Soo Lee. This factory was one of the main production companies that manufactured clothing for retailers such as Target, Sears and JC Penny’s. The Vietnamese workers had to pay $8,000 to the Vietnamese Government Labor Export Offices for the opportunity and papers to work at Lee's factory.

Lee displayed no signs of empathy for his workers nor did he attempt in any way to alleviate the hazards working conditions that he provided to his employees.

In exchange for their testimony at the trial held in Hawaii, the workers received special "T" Visas from the U.S. government. Those Visas enable human trafficking victims to reside in the United States. This was the largest human trafficking case prosecuted in the United States.

Southern Waters - Tameka Joseph

Southern Water, a water irrigation company that supplies products for various applications supply and install larger irrigation products, system designs and training, located in Bomaderry, NSW (England) failed to realize the importance of protecting the environment with their product and services. “Environmental protection is one of the most important, and costly, issues facing business and society today” (Cheeseman, 2004) “In the 1970s, the federal government began enacting statutes to protect our nation’s air and water from pollution. Federal legislation was also enacted to regulate hazardous wastes and to protect wildlife… These laws provide both civil and criminal penalties” (Cheeseman, 2004). Southern Water was a victim to this law.

Southern Water caused sewage pollution and the death of many fish by a temporary power failure. The power failure caused sewage treatment works out of action, which caused the pumps to stop temporarily working, and the inlet gate closed. Once power was restored the gates remained closed causing sewage to pump against the closed gates. The gates remaining closed lead to the backup in the inlet chamber causing the sewage to spill out onto the site. Because Southern Water “failed to use reasonable care, with harm to another party occurring” (Mallor, Barnes, Bowers & Langvardt, Ch. 6) they were found in negligence of this disaster because there should have been some sort of control, which would prevent the pumps from working if, the inlet gate shut. Due to the system, malfunctioning Southern Water had to face the consequences of their actions.

“On July 20, 2006 Southern Water notified the environment agency of a spillage of sewer at the Peel Common Sewage Treatment Works. Southern Water identified and stopped the overflow of sewage from the site. They found that it had flooded to the north and north west of the treatment plan but failed to realize until three hours later that it had entered draining ditches around the site that led directly to the River Alver” (Noden, 2007).

Nalico Equity Corporation – Sherila Perez

As the result of fiasco of companies like Enron, President Bush signed the Sarbanes-Oxley Act into