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Royal Dutch Case Study

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Dawn Carter
September 24, 2012
Journal Writing:
Can Chapters 4&5 be applied to the Enron Scandal in 2001? What ethical dilemmas were at the forefront of that issue?

The Enron Scandal was considered a White Collar Crime. The Enron executives applied for and were subsequently granted government deregulation. As a result of this declaration of deregulation, Enron executives were permitted to maintain agency over the earnings reports that were released to investors and employees alike. The agency allowed Enron’s earning reports to be extremely skewed in nature, losses were not illustrated in their entirety, this prompted more and more investments on the part of investors wishing to partake in what seemed like a profitable company. By misrepresenting the earnings reports while continuing to enjoy the revenue provided by investors. The executives of Enron embezzled funds coming in from investments while reporting fraudulent earnings to the investors. This only proliferated more investments and also attracted new investors. Enron announced that there was a critical circumstance within California with regard to the supply of Natural gas. Many historians and economists suspected that the Enron executives manufactured this crisis in preparation of the discovery of the fraud they had committed. The executives of Enron were enjoying the funds rendered from investments; the corporation itself was approaching bankruptcy. Enron executives are defined as the criminal activity involving the unlawful and unethical attainment of monies and funding by employees, funds that are embezzled are intended for company use in lieu of personal use. While the Enron executives were pocketing the investment funds from unsuspecting investors, those funds were being stolen from the company, which resulted in the bankruptcy of the company. Due to the

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