An Organizational Ethical Dilemma.

In 1999 and 2000, the Rite Aid Corporation experienced an ethical scandal of mammoth proportions. Along with several other higher ups, Martin Grass, Rite Aids CEO, committed accounting fraud. They reported that the company had a higher revenue than it actually had and at the same time funneled this extra money into their own private accounts (Kercheval, 2002). Grass was also accused of authorizing guaranteed corporate loans altering and backdating documents and withholding lucrative compensation awards from proxy statements (Kercheval, 2002). A class action lawsuit was brought against Rite Aid by its employees because of the incurred losses in shareholdings and income due to the bookkeeping and accounting fraud (Rite aid faces, 2003) The companys reputation was severely hurt by this