Question 1

The Steinhoff saga, possibly the biggest case of corporate fraud in South African business history, has dominated financial and general news since the companys share price collapsed on 5 December 2017.

The reality is that it seems as though the crisis at Steinhoff is more than an overstatement of income and asset values which has triggered a liquidity and credit crunch. It is about the collapse of corporate governance and great levels of unethical business leadership.

Required:

Do some research (use sources other than your prescribed textbook) and explain why it is important for businesses to have ethical standards and codes of conduct for financial managers.

Include another example where poor ethical practices by people in a management or trust position have led to significant losses.

Remember to reference your answer and add your reference list to the bottom of this question.