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Ethics


            The leaders of a company set the ethical base in corporations in terms of decision-making and how to treat other people. If the corporation makes bad decisions that were based on bad ethical point of views the head of the company or CEO's get blamed for it in terms of being bad leaders. Bad ethical decisions effect not only the company it self it also effects the stakeholders, owners, employees, and it's customers, because the stocks may fall.
             A perfect example of this is with James E. Rohr, chairman and CEO of PNC Financial Services Group Inc, whose accountability is being questioned because when under Rohr, "Pittsburgh's PNC made an accounting maneuver that on July 18 brought down the ire of the Federal Reserve, Securities & Exchange Commission, and the Office of the Comptroller of the Currency (occ)." PNC put $762 million of bad assets into three off-balanced-sheet entities, they "camouflaged" the risks, sold stock after "inaccurately" portraying it's financial performance, and misled shareholder all under Rohr.
             Many analysts" say that the guy at the top should take the blame, but so far Rohr looks like he will get away with it. After Rohr's first bad decision PNC's shares fell 10% when it later restated 2001 earnings and have lost 23.5% this year. After PNC announced that they would maintain with their same CEO in August 28, 2002, PNC's stock fell 3.5% to $46.20. The main problem with PNC was there leadership or lack of it. PNC, with partner American international Group Inc., continued to create off-balance-sheet vehicles and to shift bad assets into them last fall as Enron was collapsing. With, "shows at best the lack of awareness of public concerns on Rohr's part.
             Rohr was not involved in the details, he relied on the advice of his lawyers and financial experts. He has apologized but has not taken the blame for what happened. .
             "I am disappointed by these events," he told investors in a July 18th conference call.


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