Read the given, case study then answer the following questions. Expound or be specific on your answer.

CO1, CO2	How is professional ethics applied in the scenario? Does it differ in our moral responsibility as a person? How?
CO1, CO2	What moral theory would be the most applicable on the given case study. Explain why.

Computer Associates: A Firm with a Scandal-RiddledPast

Computer Associates (CA) is a multinational computer software company founded in 1980 and headquartered in Islandia,New York. In 1989, it became the first software organization to generate $1 billion insales.28Today CA employs nearly 14,000 people in 150 offices spread across more than 45 countries. Its 2008 annual revenue was $4.3 billion. In 1997, the chairman of Computer Sciences Corporation (CSC), Van Honeycutt, filed a $50 million bribery and extortion suit against CA's founder, chairman, and CEO Charles Wang. Honeycutt claimed that Wang had offered him a $102.5 million bribe to sell the company to CA for $100 pershare.29Van Honeycutt further alleged that when he did not accept the offer, CA executives "threatened to wrongfully harm CSC if it refused to agree to a transaction" at $98 per share. It was a few weeks after this alleged incident that CA launched a hostile takeover bid. Eventually the two companies dropped all lawsuits related to CA's takeover attempt and announced a major expansion of their global software licensingagreements. In 1999, a CA shareholder objecting to Wang's compensation package took Wang and two other executives to court and kept them from receiving a $1.1 billion payout. As a result, Wang had to settle for a total compensation of $675 million for 1999making him the highest paid executive in the United States. This amounted to one of the largest executive compensation packages in history at that time, and came at a time when CA's earnings and stock price hadfallen. The vice president of finance of CA pleaded guilty to conspiracy to commit securities fraud and obstruction of justice in April 2004. The fraud involved backdating contracts worth hundreds of millions of dollars to pump up the company's quarterly earnings both to meet analysts' expectations and to make the firm's stock look more attractive toinvestors.32The former CFO and a former

senior vice president were also suspected of playing a role in the fraud.

In April 2004, Sanjay Kumarchairman and CEO since Wang's retirement in 2002resigned under pressure from the board, which feared he would become embroiled in the growing accounting scandal.33Also that month, the company restated its financial results from 2000 and 2001 to reflect $2.2 billion in revenue that was booked prematurely. Kumar was charged with securities fraud, conspiracy, and obstruction of justice in September 2004. Kumar was eventually found guilty and sentenced to 12 years in jail. CA agreed to pay $225 million to shareholders in restitution in order to defer criminal prosecution. CA said it would cut its workforce by 800 to help pay the restitution. Also as part of the agreement, an outside monitor was assigned to track CA's financial reporting for one and a half years. CA also agreed to assist the government in retrieving any compensation and bonuses awarded based on the fraudulent financialresults.

In more bad news for CA's Kumar, the indictment against him was revised in July 2005 to include charges that he offered a $3.7 million bribe to discourage a business client from revealing CA's fraudulent accountingpractices. As a result of these various scandals, many CA board members and executives were replaced between 2004 and 2006, including the CEO, chairman of the board, executive vice president of development, CFO, COO, CTO, chief marketing officer, chief administrative officer, and co-general counsel. Most of these executives were sentenced to jail, fined millions of dollars, or both.