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Yahoo Case Study Analysis 2011 Hyundai

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2012 was the year of the CEO for Yahoo, Inc. The company had two CEOs, Scott Thompson and Marissa Mayer. The question is why. A scandal caused the shift in power from Thompson to Mayer. It was released that Thompson’s résumé that was submitted to the SEC (Securities and Exchange Commission) and to the Yahoo Board of Directors contained information that was not true. It appeared as though Thompson falsified his résumé to claim he had a degree in computer science because it was discovered that Thompson only has a degree in accounting from a college near Boston (Carlson). How did this seemingly small error cause a scandal at the company when Thompson had made a successful career as a high level executive for other companies?
A Yahoo, Inc. shareholder began his own investigation of Thompson.  When confronted about the issue Thompson had not done anything to clear up the issue or attempt to alert the public or shareholders of the issue.  As a result of his actions along with the moral conflict from Yahoo employees, Thompson was asked to resign by the Board of Directors.  His resignation did not appear to come as a result of the scandal but due to issues with his health.


Stakeholders involved in the scandal include Yahoo, Inc. employees, shareholders, and other potential candidates for the Yahoo, Inc. CEO position.  The employees, who began to distrust their CEO Scott Thompson, also had internal moral conflicts about working for a man who added false information to his résumé to get his job which made many employee unhappy and embarrassed to work for the company.  The shareholders were affected because they entrusted the Board of Directors to choose the best CEO for the company, which to many shareholders who value honesty, would not have been Scott Thompson.  Other potential candidates for the Yahoo, Inc. CEO position were affected because they were most likely honest on their résumés and might have had the same if not more qualifications for the job but a dishonest Scott Thompson was hired instead as a result of his embellished résumé.

Yahoo's Scott Thompson and Marissa Mayer

The Theory of Individualism was created by Michael Friedman.  It claims that a business’ only goal is to maximize the business’ profits (Salazar).  One can say that Yahoo failed at doing this by not conducting a more thorough investigation of Thompson’s résumé.  By doing this before hiring him as the CEO, the company would not have appeared shaky and not trustable especially during a period where the company was already having competition issues with Google and Facebook (Stewart).  By hiring a credible, honest, and competent CEO Yahoo, Inc. would have been able to keep employees happy which in turn affects the profitability of the company.  If Yahoo wanted to keep Thompson despite the résumé issue, the Board of Directors should have made him publicly rectify the issue to acknowledge the shareholders and the public.  This would have shown that he could be trusted.  The manner in which the scandal was handled did not maximize profits.  This can be seen from the decreasing Yahoo stock prices during the first few weeks of May when the scandal ensued.  The stock fell from trading at $15.77 on May 2nd, the day before the scandal, to $15.19 on May 11th, the last day that Thompson was in office ("YHOO Historical Prices | Yahoo! Inc. Stock - Yahoo! Finance.").


The theory of utilitarianism states that happiness is the only thing that is of real value (Salazar).  This scandal questions whose happiness is to be valued the most.  Is it the happiness of Scott Thompson or the happiness of Yahoo’s shareholders?  Utilitarianism is an ethical tradition that directs us to make decisions based on the overall consequences of our acts (DesJardins 24).  Scott Thompson made the decision to falsify his résumé in order to obtain the position of CEO for Yahoo, Inc.   To him, this decision was necessary to achieve happiness because of getting the job that he wanted.  The happiness of the employees and shareholders was taken into account when Thompson was asked to come clean about the issue and ultimately asked to leave his position at the company.  Yahoo, Inc. took the happiness of the stakeholders into account and subsequently hired a more trustworthy and competent CEO to run the company.

Yahoo! Inc. headquarters in Sunnyvale, CA

The Kantian theory states that “people should be treated as ends and not as means” (DesJardins 38).  It appears that Thompson used the Board of Directors as a means of obtaining his position of CEO.  By submitting a résumé with false but possibly crucial information, Thompson lied to the Yahoo Board of Directors and the SEC.  Yahoo, Inc. is also guilty of using Thompson as a means and not as an end.  Whether the company wishes to acknowledge it or not, they hired Thompson to make Yahoo more successful against its competitors.  Based on Thompson’s résumé and his past success with PayPal and Ebay, the Board of Directors wanted him to work magic for Yahoo.

Virtue Theory

The virtue theory consists of four basic virtues:  courage, honesty, temperance/ self-control, and justice/fairness (Salazar).  In this case, Scott Thompson displayed courage by not wanting to resign due to the scandal or his health issue of thyroid cancer (Stewart).  Thompson doesn't exhibit the honesty virtue.  His résumé containing false information was given to Yahoo and PayPal as well (Pepitone).  Yahoo, Inc. does show honesty because the issue was released to the shareholders and the public despite it being bad publicity.  Thompson did not display self-control by supplying a falsified résumé to the Yahoo Board of Directors and the SEC in order to get the job that he wanted.  Justice/ Fairness is seen from Yahoo, Inc. because they got rid of Thompson as a result of the scandal and hired Marissa Mayer as the new CEO.


Carlson, Nicholas. "Scott Thompson Resume Scandal Is Not 'An Inadvertent Mistake' - He Also Claimed Comp Sci Degree As CTO Of PayPal." Business Insider. Business Insider, Inc, 3 May 2012. Web. 2 Apr. 2014. <http://www.businessinsider.com/here-is-scott-thompsons-paypal-bio-2012-5>.

DesJardins, Joseph R. An Introduction to Business Ethics. New York, NY: McGraw-Hill/Irwin, 2014. Print.

"List of Public Companies Worldwide, Letter  - Businessweek - Businessweek." Businessweek.com. N.p., n.d. Web. 2 Apr. 2014. <http://investing.businessweek.com/research/stocks/people/person.asp?personId=20480823&ticker=EBAY>.

Pepitone, Julianne. "Yahoo CEO Scott Thompson out after resume scandal." CNNMoney. Cable News Network, 13 May 2012. Web. 2 Apr. 2014. <http://money.cnn.com/2012/05/13/technology/yahoo-ceo-out/>.

Powerpoint Presentations by Heather Salazar

Stewart, James. "In the Undoing of a C.E.O., a Puzzle." The New York Times. The New York Times, 18 May 2012. Web. 2 Apr. 2014. <http://www.nytimes.com/2012/05/19/business/the-undoing-of-scott-thompson-at-yahoo-common-sense.html?pagewanted=all&_r=0>.

"YHOO Historical Prices | Yahoo! Inc. Stock - Yahoo! Finance." YHOO Historical Prices | Yahoo! Inc. Stock - Yahoo! Finance. N.p., n.d. Web. 2 Apr. 2014. <http://finance.yahoo.com/q/hp?s=YHOO&a=04&b=2&c=2012&d=04&e=14&f=2012&g=d>.

Hyundai recalls 139,500 Sonatas in US on steering – Yahoo! News http://news. yahoo. com/s/ap/us_hyundai_recall New User? Register Sign In Help Trending: Rachael Ray Search Yahoo! Mail Web Search Brought to you by Yahoo! Finance HOME U. S. BUSINESS U. S. Economy WORLD ENTERTAINMENT Earnings SPORTS Opinion TECH POLITICS SCIENCE Press Releases saturday night live HEALTH Taxes nascar OPINION Marketplace fedex cup MOST POPULAR Newsmakers dallas cowboys iran Business Video Search All News Stock Markets Personal Finance bishop eddie long TRENDING NOW: TELL US WHAT YOU THINK: Vote and comment on the big issues of 2010

Top Stories Israeli building slowdown ends; settlers celebrate Witness describes ‘hell’ at NJ party shooting Buzz up! 0 votes Share 136 Ga. pastor: I’ll fight like David battled Goliath Email Print House leader: Colbert was an ’embarrassment’ – Sun Sep 26, 4:29 pm ET $93,000 cancer drug: How much is a life worth? Computer attacks linked to wealthy group or nation Vulnerable House Dems declare their independence Amgen recalls anemia drugs due to glass flakes How to Make a Balance Transfer Work for You Judge: Verdict stands in hacked Palin e-mail case More Top Stories » RELATED QUOTES ^GSPC 1,148. 67 +23. 4 WASHINGTON – Hyundai Motor Co. said it is voluntarily recalling 139,500 Sonata sedans in the U. S. because of a manufacturing defect that could cause drivers to lose steering control. The recall affects 2011 models built between Dec. 11, 2009 and Sept. 10, the National Highway Traffic Safety Administration noted on its website Sunday. Some of the cars have steering column shafts with connections that may not have been tightened enough or were improperly assembled. As a result, the steering wheel could become separated from the column or a driver could lose the ability to properly steer the car.

The U. S. government had opened an investigation into possible steering problems in the vehicle in August. Hyundai, South Korea’s top automaker, has said there have been no related injuries or crashes reported. Owners of affected vehicles can go to their dealers for inspection. Dealers also will update power steering software. Owners may also call NHTSA at 888-327-4236 for more information. The recall comes as automakers ramp up their focus on safety and quality control in the wake of Toyota Motor Corp. ‘s massive global recall last year over gas pedal and floor mat problems.

In February, Hyundai announced a recall of about 47,000 Sonata midsize sedans, mostly sold in South Korea, to replace front door latches following a handful of customer complaints. The company said it had discovered a mechanical problem with the latches which, in rare instances, would not close properly. Earlier this month, Hyundai affiliate Kia Motors said Chung Sung-eun resigned as vice chairman following a global recall of more than 100,000 vehicles due to defective wiring. Of that total, 35,185 vehicles were recalled in the United States. Together, Kia and Hyundai form the world’s fifth-largest automotive group.

So far this year, U. S. sales are up 17 percent for Hyundai Motor America, though August sales fell 11 percent from a year-earlier record sparked by federal Cash for Clunkers rebates. The new Sonata has been selling well and nearly doubled its sales numbers to 21,399 in August. sponsored links 5 Diet Pills that Work 2010’s 5 Best Weight-Loss Pills – All-New Ratings & Reviews. www. DietRatings. org Solar Cells Solar cell for sale buy solar cells build own diy solar panels go green solarcellsstore. net Follow Yahoo! News on Buzz up! 0 votes Twitter, become a fan on Facebook Email Print Share 136 Editor’s Picks More Slideshows »

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Watch Who Knew? : There’s a new way to get the news. » More Who Knew? videos 1 of 3 9/27/2010 6:01 AM Hyundai recalls 139,500 Sonatas in US on steering – Yahoo! News http://news. yahoo. com/s/ap/us_hyundai_recall Co. recalls 190,000 ThermaCare HeatWraps Menstrual AP Reuters 91 Comments Post a Comment Show: Business Video: Debt Collectors Gone Wild ABC News Top Stories on Facebook Are you on Facebook? Join our page for top stories! » Join our Facebook page here Comments 1 – 10 of 91 First Prev Next Last Eunhee 5 minutes ago Report Abuse 1 1 iPhone App: The Scoop Looking for the best cup of coffee in NYC?

Turn to The Scoop. » More from NYTimes. com i won’t buy america made vehicles Because the worker drinks’ smokes marijan on their lunch houe, shame on them, Reply Education Spyder 6 minutes ago Report Abuse 1 1 Thats what you get for buying S**t Foreign vehicles. End of story Replies (1) Are You A Leader? See how the right training and education can prepare you for management! 0 1 A_cUte_gUy 7 minutes ago Report Abuse all those ignorant people here. hyundai sonata is made in america Reply Fast Facts: Online MBAs Join us as we separate online MBA facts from fiction. Mayor West 13 minutes ago Report Abuse 3 1

Toyota brakes having killing people for 20 years, we only found out about it last year. There is nothing left anymore for the Accord because the accord lost its presence, nothing wow about it. Reply Finance MARKET SUMMARY Mayor West 15 minutes ago Report Abuse 0 1 Symbol Dow Nasdaq S&P 500 10 Yr Bond(%) Oil Gold Charles C 16 minutes ago Report Abuse 3 0 Last 10,860. 26 2,381. 22 1,148. 67 2. 6120% 76. 79 1,296. 00 +0. 30 +0. 80 +197. 84 +54. 14 +23. 84 Change +1. 86% +2. 33% +2. 12% +0. 5700 +0. 39% +0. 06% The car people tend to ignore the most is Volvo cars, only sophisticated and classy people drive volvo.

Look, even thugs drive benz and bmw but you’ll never see a thug drive a volvo because the thugs are not sophisticated or educated enough. I hope to one day own a volvo. and they last forever. Reply MY country has severe economic troubles. I will be da**ed if I will make a major purchase of a foreign product in these times . I owe my county too much and there is too little I can do in return , but that much I can and will do , I will buy american cars and what ever else I still can , while I can . As gor me and my house we support american workers and american manufacturers . Period . Replies (2)

Comcast COO Burke takes top spot at NBC Universal Hyundai recalls 139,500 Sonatas in US on steering Experts question BP’s take on Gulf oil spill More from Yahoo! Finance » ADVERTISEMENT M 20 minutes ago Report Abuse 3 4 well at least the cars are being recalled before anyone gets killed. HELLO Toyota ,i have a 2008 sonota and it is by far the best car i’ve ever had,i’m ready to buy another,have over 100,000 miles on it and have never taken it to the dealer for anything it runs great. I’m a former owner of fords,chevys,hondas,mitsubishi,suzuki,dodge,lincoln and toyota and this is without a doubt the best i’ve ever had.

Reply Mayor West 21 minutes ago Report Abuse 2 3 Not good for Hyundai because they have been on top lately with the new sonata which is truly a beauty with its 4 door ‘coupe’ design and superb interior. I would choose the new sonata over the new accord or camry. Reply Keith 23 minutes ago Report Abuse 4 2 must be using old yugo parts Reply 2 of 3 9/27/2010 6:01 AM Hyundai recalls 139,500 Sonatas in US on steering – Yahoo! News http://news. yahoo. com/s/ap/us_hyundai_recall Bob 27 minutes ago Report Abuse 1 6 Honda has been the most reliable car on the market. I know many people that drive Honda’s and would buy again.

Yep! seems most cars get their turn on the recall but friends and their friends get 350,000 to 500,000 with good service on their Honda. You finally sell because after that long you just want to buy a newer vehicle. Mercedes to much money for a car that lives in the repair shop it’s whole life. Acura is your best luxury car for the money and beautiful car. Reply Home U. S. Business World Entertainment Sports Tech Politics Science Health Travel Most Popular News Opinion Odd RSS News Alerts Weather Yahoo! News Network Alerts Site Map Help Feedback Comments 1 – 10 of 91 First Prev Next Last Post a Comment

Sign in to post a comment, or Sign up for a free account. Most Viewed – Business China rises and rises, yet still gets foreign aid AP Free Stream! Watch Live NFL Football Games Online Stream in HD with Satellite Direct PRWeb Hyundai recalls nearly 140,000 Sonata sedans in US AFP White House, Dems see tax cut vote after election AP Experts question BP’s take on Gulf oil spill AP All Most Viewed » Daily Features Elsewhere on the Web Time. com: Internet Explorer 9: Microsoft’s New Browser Impresses NPR: Wildlife Films: Seeing But Not Always Believing FOXBusiness: Work-From-Home Help, Communities Abound All Comics »

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