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Enron the Fallen

In: Business and Management

Submitted By vixentiffy
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Enron the Fallen
Tiffany Califf
Professor: Karina Arzumanova
LEG100014VA016-1116-001Business Law I
July 24, 2011

Describe how Enron could have been structured differently to avoid such activities. Enron’s leaders had the work ethic of only fighting for themselves and if others got hurt it was no big deal hurting. Enron had that it’s a dog-eat-dog thinking. This type of thinking would, in the end, be the demise of Enron. Enron focused on short-term gains. The accounting tactics of Enron were degraded by no small terms. Enron was full of demoralized people throughout several departments with growing their personal finances their ultimate goal. They projected many years of financial growth when it didn’t exist and hid finances of millions when it was suitable. To avoid these acts, Enron would need to overhaul their aspect on the importance of their financial recordings and the senior executives would feel the consequence of seeking action for long term boom of the company instead of the quick buck. I believe that Enron was absolutely aware of their poor judgment. If Enron was serious about avoiding illegal acts, they would have make statements that were truthful of material fact, and would have not omitted material facts necessary to make the statements that were made. They needed to focus on the culture of their business. They should have paid notice to the values and how well they had been adopted by the board, leadership, and all levels of employees. Enron needed to incorporate a Code of Ethics, and make sure that these ethics are practiced every day. These codes provide guidance for hard and ethical decisions that may have to be made. Enron’s senior management should have held themselves to the highest standards which causes that same action to trickle down throughout the company. Executives with high standards of honesty and trustworthiness would

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