The Biggest Corporate Scandals of the Decade (2010 – 2019)

The Biggest Corporate Scandals of the Decade (2010 – 2019)

It’s mind-boggling to think that some of the most controversial scandals in our country’s history have taken place only in the last decade. Corporate scandal is a hot media item, with the misbehavior of employees at all levels facing public scrutiny. Information on corporations and their corporate culture is more visible than ever as experts continue to place more and more importance on work-life balance, and satisfaction in the workplace remaining the driving force behind employee engagement. As technology and the ubiquity of accessible information continues to advance, private United States citizens are becoming more informed about the largest corporations in the nation, how their behavior effects their corporate footprint, and how their own consumerism can affect these corporations.

BP Oil Spil

There’s no better place to start than at the beginning. In April of 2010, the oil and gas conglomerate BP began the new decade with an oil spill so catastrophic that we’re still talking about the environmental impact ten years later. The corporate scandal also involved devastating loss. The Deepwater Horizon rig exploded off the coast of the Gulf of Mexico, which broke open the will, dumping between 2.5 and 4.2 million barrels of oil into the gulf before it could be capped once more. For thousands of miles, the oil slicks contributed to the deterioration of marine life and had cost the corporation in excess of $65 billion dollars before 2020. In an article published in June of 2010, Peter Fairly of MIT Technology stated, “A culture of tighter safety and more experienced regulators might have prevented the BP Deepwater Horizon leak.” Under the terms of a settlement, BP agreed to pay the Natural Resource Damage Asessment Trustees up to $8.8 billion for restoration work to rebuild the natural environment that was damaged by the spill.

Foxconn Suicides

Later in 2010, there was an alarming string of suicides at a plant run by Foxconn, a Chinese corporation that produces roughly 40% of the world’s consumer electronic components—technology that builds our smartphones, gaming consoles, and other forms of smart technology. These tragedies were covered heavily in American media as questions arose to the quality of labor conditions in these Chinese plants. In subsequent investigations, it was revealed that workers could be working 12-hour shifts, with less than a dollar (U.S.) in their pocket for food. While the suicides received a great deal of coverage, and had public relations repercussions for corporations that utilize Foxconn exports, there have been at least 8 additional suicides at the same factor have been reported since 2010.

FIFA Corruption

Few things are more universally loved across the globe than soccer, or football, as it’s known in the rest of the world. In May of 2015, millions of soccer fans were shaken by the FIFA corruption corporate scandal. The Department of Justice indicted the Federation Internationale de Football Association leadership on charges of racketeering, wire fraud, and money-laundering. The indictment outlined various instances of an excess of $15 million dollars in bribes taken by executives for preserving advertisement marketing rights for decades. The scandal lead to the resignation of President Sepp Blatter in June of 2015 after he managed to escape indictment. Millions of dollars in legal costs and loss of corporate sponsorship severely damaged the reputation of the organization, netting losses of $122.4 million.

Theranos & Elizabeth Holmes

The scandal surrounding the health technology company known as Theranos was a cluster 15 years in the making. Once again a corporate scandal that effected public health, both the executive and the corporation were villified in the media. Stemming from a fear of needles when she was a child, founder Elizabeth Holmes was seeking to develop a technology that would lead to higher accessibility of blood-testing throughout the world. Her device supposedly would be able to perform a smattering of biological tests from a single drop of blood. The Wall Street Journal published an expose in October of 2015, exposing more of the company’s deception and further implicating some of Holmes’ colleagues in the scandal. Holmes was charged with massive fraud in March 2018. Formerly thought of as a young genius, she is scheduled to stand trial in 2020, facing up to 20 years in prison and millions of dollars in fines.

Big Pharma & the Opioid Crisis

Corporate Scandals

Corporate scandal is at it’s worst when it comes to public health. The ever-growing opioid crisis in the United States is hands down one of the most pervasive scandals of the last decade. In 2017 alone, there were over 70,000 drug overdose deaths in the United States. Of those overdose deaths, 67% came from an overdose of opioids. From the Midwest to the Northeast, opioid deaths spiked between 2016 and 2017. As of November 2019, six pharmaceutical companies were under federal investigation and were facing federal charges for their responsibility for the opioid crisis. Amongst other big pharma companies, Purdue Pharma reached settled for billions of dollars for communities in 23 states that were affected by their shipment of opioids, forcing the company to ultimately filing for bankruptcy. The settlement set major precedent as the first of it’s kind in our American legal system.

Active Shooter Training in the Workplace

Active Shooter Training in the Workplace

Active Shooter Training in the Workplace

active shooterSo far this year, there have been 297 mass shootings in the United States. Seeing as how November 1st is the 305th day in the calendar year, it would appear that the spike in active shooter events in recent years will not slow down any time soon. While schools redefine their safety protocols and implement programs that prepare students for these events, employers throughout the United States are also beginning to understand the importance of preparing their workforce for an active shooter event. The year of 2017 broke the record for the most mass-shooting deaths every recorded—112 deaths, well exceeding the amount in any other year in recorded history. In 2018, the Bureau of Labor Statistics published a report that showed another spike in workplace homicides. According to them, there were 83 workplace homicides in 2015, a number that skyrocketed to 500 for the year of 2018 alone. A terrifying 79% of those cases were the result of an active shooter. As a result, the desire for employee active shooter training has never been higher, with NPR reporting that as of 2016, 75-80% of employers are seeking qualified active shooter training to protect their workforce. The Department of Homeland Security has a myriad of resources on their website for dealing with active shooters. One of them is a pocket-card that outlines the characteristics of an active shooter event, “Victims are selected at random. The event is unpredictable and evolves quickly. Law enforcement is usually required to end an active shooter situation.”  Active shooters may fire at random, using no discernible criteria for their victims, but that arbitration should not be misunderstood. Perpetrators are deliberate, focused, and simultaneously detached from their task, creating a fatal perfect storm. active shooter The Department of Homeland Security also have their own guidelines to how private citizens should react during an active shooter event: Run—hide—fight. Run At the onset of an active shooter event, individuals should immediately identify an escape route, most likely a fire exit. While keeping their hands visible, they should leave their belongings behind and run to safety as quick as possible, assisting others if needed. Hide Once they’ve reached safety (or if escape is impossible) the Department of Homeland Security recommends hiding immediately in a location out of the shooter’s line of sight. Individuals should block the door or manner of entry into their hiding spot and silence their cell phones and pagers. Sit very quietly and wait for first-responders to find you. Fight The Department of Homeland Security lists this option as an absolute last resort in the event of an active shooter in the workplace. Your life should be in immediate danger, and you should be well-positioned to act with physical aggression and incapacitate the shooter. Many third-party security companies also endorse the methods of Homeland Security, but there are others that take a different approach. Laurence Barton, a workplace violence expert, recommends employers seek training programs that promote a culture of safety and preparedness—not fear. In lieu of careful research regarding active shooter training, many employers opt for the simple, cost-effective route by showing employees the prolific training video produced by the city of Houston, which features graphic depictions of employees being shot. “When some companies have created these videos that show blood and guts—that’s not in any way the kind of learning that stays with people. In fact, it repulses them…employees get scared,” Barton says, “I just don’t believe scaring people is the way to teach them. It just promotes anxiety.” Aric Mutchnick, the president of a risk management firm called the Experior Group, agrees with Barton, “Cops or military guys like to have it very realistic because they think the more real it is, the more they can find out. That is true if you’re a tactical team, but you can’t apply tactical training to a civilian population.” Mutchnick points out that the equal distribution of choice laid down by the Department of Homeland Security—run, hide, or fight—is not only dangerous, but unrealistic, “It should be 90 percent run, 8 percent hide until you can run, and then as for fight, really? Are you kidding? I don’t know how you would even train on that.” Companies like Experior Group also recommend that a base knowledge of firearms should also be part of the training, not so employees can operate firearms, but so their knowledge can inform their escape. Civilians who are ignorant of basic firearm operations can easily be paralyzed by fear because they are uncertain of a weapons range or magazine size. This gives an active shooter ample opportunity to change their position and reload without fear of retaliation. active shooter Frozen with fear—it’s something we can all relate to. After all, many working people today are not acclimated to the viable, potential threat of an active shooter in the workplace. Aggressive, hyper-realistic training can compound the anxiety triggered by the increased probability of being involved in an active shooter event. That’s why Barton and other like-minded professionals epitomize on a feeling of safety, with straightforward and honest training that will leave any employee feeling prepared. “The chief learning officer has a huge opportunity to lead a discussion about workplace safety. [Employees] are yearning to be informed about how the world is changing and how threats get processed at work…You want to have a subject matter expert who works with law enforcement and can speak the language of all employees.” One thing that employers often overlook when considering active shooter training programs is a company that curtails the training to their individual brick and mortar location. As part of what they call “red ball drills,” Experior Group will evaluate the property to identify the specific issues that might present during an active shooter event. “The problems of a commercial building are not the problems of a hospital or a school,” Mutchnick says. “Run, hide, fight is s giant blanket they throw over the problem as a response, but it doesn’t deal with any site-specific issues.” All training dispensed by Experior Group is tailor-made for the culture and physical context of any business. When these issues have been identified, the instructor can direct employees the best manner of exit, should they have that option. active shooter The last thing to consider when choosing an active shooter training program is the credibility behind the operations. Some of the most prolific risk management and security companies are headed by former members of law enforcement or the military. This experience with weapons and chaos not only validates the content for many employers, but also leaves employees empowered with credible knowledge. However, former navy seals and swat team leaders are not the only option when it comes to the instructor. Lauren Perry, the vice president of operations for Trident Shield, often addresses training groups. Her specific style and feminine touch opens the dialogue in any room, allowing individuals who might not respond to an aggressive, alpha males to remain engaged in the training, retaining the information that might one day save their lives. Many employers often grapple with the cost of active shooter training for their employees. With many training programs averaging in the realm of thousands of dollars, employers often question whether or not active shooter training is even necessary. The Occupational Safety and Health Act of 1970 says, “Employers have the responsibility to provide a safe and healthful workplace that is free from serious recognized hazards.” The rise of active shooter events in the United States is most certainly recognized, with every event further inflaming the political world and conversations surrounding gun control. Given the statistics we’ve seen here, it appears as though it’s not a matter of if an active shooter even will occur, but when. Carie McMichael is the Communication and Media Specialist for Lauth Investigations International. She regularly writes on private investigation and missing persons topics. For more information, please visit our website. 

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