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Interpret the Implications of Health South and Scrushy: Of all the CEO’s accused of misdeeds in recent years – at Enron, WorldCom, and elsewhere – by far the most interesting is former HealthSouth CEO Richard Marin Scrushy. A charismatic leader, Scrushy could get employees to follow him either through charm or encouragement, or outright intimidation. In 2003, the Securities and Exchange Commission accused in a civil law suit the HealthSouth Corporation and Scrushy of inflating the company’s earnings by $1.9 billion since 1999 (Securities and Exchange Commission, 2003). In separate criminal charges, 15 former executives pleaded guilty of participating in a scheme to fake corporate profits to meet Wall Street expectations.
Using Case 4.6, HealthSouth: The Scrushy Way, and by utilizing a minimum of 10 peer-reviewed references and completing outside research, examine the HealthSouth and CEO Richard Scrushy case and its ethical issues. Discuss how ethics may have played a role in the government’s responsibilities to all parties involved in the case.
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