Healthsouth
Mohamed A. Hassan
Ph.D Research Scholar
Introduction
From a business point of view, any organization works hard to achieve the highest ranking position among its competitors as well as working on showing loyalty to their customers’ base. However, in today’s business world, this is not the case as it has always been ever since the organizations started and existed in the world. Becoming competitive and the ability to retain a great base of loyal customers do not just happen with the blink of the eye (Jennings, 2009). Any organization needs to be compliant with many factors such as effective leadership, innovation and creativity, ethical behaviors and honesty, positive organization culture, openness and good practices among others. Having said that, there are some organizations that want to achieve more than is their normal operations capabilities so they can achieve a high set of goals and objectives and to gain bigger market share than their competitors at all the times. Such cases happened in the past with several companies such as Enron, WorldCom and others. In such scandals, the CEOs were accused of conducting illegal actions and unethical behaviors.
Health South: The Scrushy Way
Richard M. Scrushy, the former CEO of HealthSouth Corporation which owns a chain of hospitals and clinics, benefitted from some of the most well known celebrities that were associated with HealthSouth organization. The former CEO used the celebrities’ fame and reputation in order to gain more people and customers to enter the facilities and to seek their services. In addition to using such an unethical method to advertise and market their business, HealthSouth also used to list on their website some of the well know name of the celebrities and sports figures that used their services and facilities. In 2003, the Securities and Exchange Commission (SEC) accused HealthSouth and its CEO Richard Scrushy with overstating and inflating the earnings of the company. Also the federal
Ph.D Research Scholar
Introduction
From a business point of view, any organization works hard to achieve the highest ranking position among its competitors as well as working on showing loyalty to their customers’ base. However, in today’s business world, this is not the case as it has always been ever since the organizations started and existed in the world. Becoming competitive and the ability to retain a great base of loyal customers do not just happen with the blink of the eye (Jennings, 2009). Any organization needs to be compliant with many factors such as effective leadership, innovation and creativity, ethical behaviors and honesty, positive organization culture, openness and good practices among others. Having said that, there are some organizations that want to achieve more than is their normal operations capabilities so they can achieve a high set of goals and objectives and to gain bigger market share than their competitors at all the times. Such cases happened in the past with several companies such as Enron, WorldCom and others. In such scandals, the CEOs were accused of conducting illegal actions and unethical behaviors.
Health South: The Scrushy Way
Richard M. Scrushy, the former CEO of HealthSouth Corporation which owns a chain of hospitals and clinics, benefitted from some of the most well known celebrities that were associated with HealthSouth organization. The former CEO used the celebrities’ fame and reputation in order to gain more people and customers to enter the facilities and to seek their services. In addition to using such an unethical method to advertise and market their business, HealthSouth also used to list on their website some of the well know name of the celebrities and sports figures that used their services and facilities. In 2003, the Securities and Exchange Commission (SEC) accused HealthSouth and its CEO Richard Scrushy with overstating and inflating the earnings of the company. Also the federal
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