Corporate scandals refer to unethical or illegal activities conducted by companies or their executives that can lead to significant financial losses, legal consequences, and damage to reputations. These scandals often involve fraud, embezzlement, insider trading, or misleading financial statements, which can mislead investors and the public. High-profile cases, such as the Enron scandal, illustrate how corporate misconduct can have widespread repercussions. The fallout from corporate scandals can result in stricter regulations and reforms aimed at increasing transparency and accountability in the business world. For instance, the Sarbanes-Oxley Act was enacted in response to scandals like Enron and WorldCom, establishing new standards for corporate governance and financial practices to protect investors and restore public trust.