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HOW FRAUD AFFECTS CORPORATE STRATEGY: THE CASE OF GENERAL MOTORS AND JOHN McNAMARA
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Journal Article
HOW FRAUD AFFECTS CORPORATE STRATEGY: THE CASE OF GENERAL MOTORS AND JOHN McNAMARA
2015
Overview
To better understand how fraud affects corporate strategy, the authors examine the case of John McNamara, who in the 1990s committed a $436 million fraud against General Motors (GM). They chose to highlight this case because of the significant strategic implications of the fraud as well as the applicability of the case to organizations today. Unlike most fraud incidents that are either quietly hidden or quickly dismissed by management, most of the details of the John McNamara fraud have been made public, including numerous court filings and documents. Furthermore, because the case took place more than 20 years ago, they now can look back and identify the long-term implications that the fraud had on GM. By understanding the long-term effects of the fraud, they can better understand the relationship between fraud and corporate strategy. Thus, the case allows them to illustrate the disadvantages the fraud created for GM compared to other organizations within the industry.
Publisher
Thomson Reuters (Tax & Accounting) Inc
Subject
