Case Study: Wirecard AG
This is a case study, which means you are expected to research thoroughly and cite your sources in your paper. In writing your essay of between 3000 and 5000 words, you should include:
– Background data on the company, its sector and its products
– Details on the scandal
As the main topic of your case study, you should discuss:
– which unethical behaviour, in your opinion, led to the scandal
– which conditions under the theories triggered or promoted the ongoing unethical conduct of Wirecard AG. Theories to be used are Corporate Governance, Corporate Culture as well as Whistleblower theories.
– how could the scandal be avoided, if at all? If you had been the ethics’ officer of Wirecard, which measures would you have recommended to the board of directors?
Sample solution
Dante Alighieri played a critical role in the literature world through his poem Divine Comedy that was written in the 14th century. The poem contains Inferno, Purgatorio, and Paradiso. The Inferno is a description of the nine circles of torment that are found on the earth. It depicts the realms of the people that have gone against the spiritual values and who, instead, have chosen bestial appetite, violence, or fraud and malice. The nine circles of hell are limbo, lust, gluttony, greed and wrath. Others are heresy, violence, fraud, and treachery. The purpose of this paper is to examine the Dante’s Inferno in the perspective of its portrayal of God’s image and the justification of hell.
In this epic poem, God is portrayed as a super being guilty of multiple weaknesses including being egotistic, unjust, and hypocritical. Dante, in this poem, depicts God as being more human than divine by challenging God’s omnipotence. Additionally, the manner in which Dante describes Hell is in full contradiction to the morals of God as written in the Bible. When god arranges Hell to flatter Himself, He commits egotism, a sin that is common among human beings (Cheney, 2016). The weakness is depicted in Limbo and on the Gate of Hell where, for instance, God sends those who do not worship Him to Hell. This implies that failure to worship Him is a sin.
God is also depicted as lacking justice in His actions thus removing the godly image. The injustice is portrayed by the manner in which the sodomites and opportunists are treated. The opportunists are subjected to banner chasing in their lives after death followed by being stung by insects and maggots. They are known to having done neither good nor bad during their lifetimes and, therefore, justice could have demanded that they be granted a neutral punishment having lived a neutral life. The sodomites are also punished unfairly by God when Brunetto Lattini is condemned to hell despite being a good leader (Babor, T. F., McGovern, T., & Robaina, K. (2017). While he commited sodomy, God chooses to ignore all the other good deeds that Brunetto did.
Finally, God is also portrayed as being hypocritical in His actions, a sin that further diminishes His godliness and makes Him more human. A case in point is when God condemns the sin of egotism and goes ahead to commit it repeatedly. Proverbs 29:23 states that “arrogance will bring your downfall, but if you are humble, you will be respected.” When Slattery condemns Dante’s human state as being weak, doubtful, and limited, he is proving God’s hypocrisy because He is also human (Verdicchio, 2015). The actions of God in Hell as portrayed by Dante are inconsistent with the Biblical literature. Both Dante and God are prone to making mistakes, something common among human beings thus making God more human.
To wrap it up, Dante portrays God is more human since He commits the same sins that humans commit: egotism, hypocrisy, and injustice. Hell is justified as being a destination for victims of the mistakes committed by God. The Hell is presented as being a totally different place as compared to what is written about it in the Bible. As a result, reading through the text gives an image of God who is prone to the very mistakes common to humans thus ripping Him off His lofty status of divine and, instead, making Him a mere human. Whether or not Dante did it intentionally is subject to debate but one thing is clear in the poem: the misconstrued notion of God is revealed to future generations.
References
Babor, T. F., McGovern, T., & Robaina, K. (2017). Dante’s inferno: Seven deadly sins in scientific publishing and how to avoid them. Addiction Science: A Guide for the Perplexed, 267.
Cheney, L. D. G. (2016). Illustrations for Dante’s Inferno: A Comparative Study of Sandro Botticelli, Giovanni Stradano, and Federico Zuccaro. Cultural and Religious Studies, 4(8), 487.
Verdicchio, M. (2015). Irony and Desire in Dante’s” Inferno” 27. Italica, 285-297.
Sample Answer
Sample Answer
Case Study: Wirecard AG – Unraveling the Scandal
Introduction
Wirecard AG, once hailed as a rising star in the fintech industry, found itself embroiled in one of the most significant corporate scandals in recent history. This case study delves into the background of the company, details the scandal that unfolded, examines the unethical behavior that led to it, explores the conditions under theories that triggered it, and proposes measures that could have potentially avoided the scandal.
Background of Wirecard AG
Wirecard AG was a German payment processing company founded in 1999. The company operated in the fintech sector, offering digital payment solutions and financial services to businesses and consumers globally. With a market capitalization that soared to billions of euros, Wirecard was seen as a pioneer in digital payments and a symbol of Germany’s tech success.
The Scandal Unveiled
The scandal surrounding Wirecard AG came to light in 2019 when reports surfaced alleging accounting irregularities and financial improprieties within the company. An external audit revealed a massive black hole in Wirecard’s balance sheet, with billions of euros missing. Investigations uncovered a sophisticated scheme where profits were inflated, and funds were funneled through offshore entities to create a facade of financial health.
Unethical Behavior Leading to the Scandal
The unethical behavior that led to the Wirecard scandal was primarily rooted in a culture of greed, deception, and a lack of corporate governance. Senior executives at Wirecard engaged in fraudulent activities to artificially inflate the company’s financial position, deceiving investors and regulators. The pursuit of rapid growth and expansion at all costs led to a disregard for ethical practices and accountability.
Conditions Under Theories Triggering Unethical Conduct
Corporate Governance Theory
Under the lens of corporate governance theory, Wirecard’s scandal can be attributed to weak oversight mechanisms and a lack of independent board scrutiny. The concentration of power in the hands of a few key executives allowed for unchecked misconduct and manipulation of financial data.
Corporate Culture Theory
The toxic corporate culture at Wirecard, characterized by a pressure-cooker environment that prioritized short-term profits over ethical conduct, contributed significantly to the scandal. The emphasis on meeting unrealistic financial targets created a culture of fear and silence, where employees felt compelled to turn a blind eye to fraudulent practices.
Whistleblower Theory
The absence of a robust whistleblower protection mechanism at Wirecard stifled internal dissent and exposed employees to retaliation for speaking out against malpractices. The lack of channels for reporting unethical behavior enabled the perpetuation of fraud within the organization.
Avoiding the Scandal – Recommendations as Ethics Officer
If I had been the ethics officer at Wirecard, I would have recommended the following measures to the board of directors to prevent such a scandal:
1. Implementing a robust whistleblower protection program that guarantees anonymity and safeguards employees who report misconduct.
2. Strengthening internal controls and audit processes to detect irregularities and prevent financial fraud.
3. Enhancing transparency in financial reporting and ensuring compliance with regulatory standards to rebuild trust with investors and stakeholders.
4. Conducting regular ethics training programs for employees at all levels to instill a culture of integrity and ethical behavior within the organization.
Conclusion
The Wirecard scandal serves as a cautionary tale of the consequences of unchecked greed, poor governance, and ethical lapses within an organization. By understanding the unethical behavior that led to the scandal and the conditions under theories that facilitated it, companies can take proactive measures to prevent such crises in the future. Upholding ethical standards, fostering transparency, and promoting a culture of integrity are essential pillars for sustainable business success and reputation preservation.
