Ever wonder what the biggest corporate scandals in modern history have been? Let’s face it: we all love to gossip about a big scandal every once in a while. Scandals that involve business corporations do not only catch the attention of the media and of the public eye, but they also have a significant impact on the state of the economy. Wondering which are the biggest corporate scandals in history? Well, we have compiled a list of the 10 most spectacular scandals and downfalls involving huge corporations. Let’s take a look at the countdown.
No. 10: Lance Armstrong and SRAM Corporation
Photo Credit: Sebastian David Tingkær
The beloved cyclist, Tour de France champion, cancer survivor and philanthropist, Lance Armstrong does not have the cleanest of records. Following his admission of using performance enhancing drugs, he is now forced to sell his millions worth of shares in a bicycle manufacturing company, SRAM Corporation.
No. 9: The Enron Fiasco
Photo Credit: Ged Carroll
Few corporate scandals in history are as popular as the Enron demise. At the beginning of the millennium, Enron was one of the most prolific corporations worldwide. However, due to the frauds in which its accounting firm was engaged, the Texan company made the headlines with one of the most spectacular bankruptcy stories ever.
See the rest of the world’s biggest corporate scandals on the following pages:
No. 8: The Swissair Downfall
Photo Credit: Marcin Wichary
Swissair, Switzerland’s former national airline company went from being one of the most important airlines on the globe to complete dismantle due to a miscalculated expansion move. In less than a year, the Swissair fleet was grounded and the corporation liquidated.
No. 7: Martha Stewart – The Ultimate Good Girl Gone Bad
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The ultimate American household name, Martha Stewart ended up being charged with several counts of obstruction of justice and fraud. Although being involved in one of the biggest corporation scandals, Stewart made an impressive comeback in 2012 when she regained her company.
No. 6: The German Spies
Deutsche Bank AG was one of the most powerful banks, not only in Germany, but worldwide. But all of this came to an abrupt end when it was discovered that the company had involved itself in spying on various board members as well as certain investors.
No. 5: Jerome Kerviel and the Euro-market Downfall
Photo Credit: Edhral
How much havoc can one single person cause? Well, if your name is Jerome Kerviel, apparently a lot. This trader caused serious distress in European trading markets when he used Société Générale’s computers to engage in unauthorized trades. He ended up causing the bank to lose nearly €5 billion.
No. 4: The Mining Scandal
Photo Credit: Mark Herpel
In the mid-1990s, a Canadian mining company, Bre-X, announced that it had discovered an impressive treasure chest, which led to a major increase in its shares. However, when it was revealed that company workers had falsified the so-called discovery, Bre-X quickly collapsed on the stock market.
No. 3: Hewlett-Packard and the Overly Curious CEO
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Apparently, spying and business go hand in hand. HP’s former CEO, Patricia Dunn, was ultimately forced to resign following a huge scandal that involved her hiring a team of security experts to verify the phone records of board members and journalists.
No. 2: Siemens and The Olympic Bribe
No. 1: Volkswagen and The Carnal Sin
Businessmen have needs too, right? Well, while that is perfectly understandable, procuring prostitutes and claiming it is somehow in the interest of the company is less easy to comprehend. Volkswagen’s manager, a fellow by the name of Gebaur did just that and brought the company in the media spotlight.
