Analysis of the Collapse of ABC Learning Limited: Ethical Issues and Corporate Social Responsibility

COMPARATIVE BUSINESS ETHICS & SOCIAL RESPONSIBILITY
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Executive summary
The report consists of a clear analysis made on the collapse of ABC Learning limited. All the
factors that may have resulted in the fall of the organization have been clearly analyzed.
Comments have also been made on the corporate social responsibility of the organization.
Further, the report also includes the lessons that have been learned by other companies after
the collapse of ABC learning.
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Contents
Executive summary................................................................................................................2
Introduction............................................................................................................................4
Major reasons behind the collapse.........................................................................................5
Major stakeholders.................................................................................................................6
Ethical issues and the CSR.....................................................................................................7
Ethical issues in the corporate governance.............................................................................8
Auditors and the reports.........................................................................................................9
Lessons learned....................................................................................................................10
Conclusion............................................................................................................................11
Bibliography.............................................................................................................................12
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Introduction
ABC Learning limited was one of the largest childcare centres in Australia. It was listed in
the Australian security Exchange with market capital of over AD$2.5 billion as of March
2006. Severe problems were faced by the company when the country was facing the
recession period which caused the debt repayments to overwhelm the organization. A
voluntary liquidation process was carried out in the year 2008 and the company was later sold
in the year 2009 (Calderon, Song, & Wang, 2016). Various reasons like the lack of
transparency, damages while performing liquidation, poor management of the organization
and ethical issues in relation to the corporate governance structure of the organization were
the main cause of the collapse of ABC Learning limited. The report further analyses more
factors that may have collapsed the company by leading it to bankruptcy.
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