...In some ways, the culture of Enron was the primary cause of the collapse. The senior executives believed Enron had to be the best at everything it did and that they had to protect their reputations and their compensation as the most successful executives in the U.S. When some of their business and trading ventures began to perform poorly, they tried to cover up their own failures. Management was compensated extensively using stock options. This policy of stock option awards caused management to create expectations of rapid growth in efforts to give the appearance of reported earnings to meet Wall Street's expectations. The stock ticker was located in lobbies, elevators, and on company computers.[44] At budget meetings, Skilling would develop target earnings by asking "What earnings do you need to keep our stock price up?" and that number would be used, even if it was not feasible.[24] The stock option system is not itself the problem. Excessive stock options and excessive corporate compensation give corporate executives too many incentives to manipulate the financial accounts and the stock price of the company. When huge cash or options bonuses are dependent upon achievement of one or a few narrowly defined profit or growth goals, the temptation to manipulate the numbers to get the rewards will be too great. The problem is not the stock option system but the excessive compensation given to executives in the United States, particularly compared to the salaries of regular employees...
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...Enron Corporation Overview: The Enron scandal, revealed in October 2001, eventually led to the bankruptcy of the Enron Corporation, an American energy company based in Houston, Texas, and the de facto dissolution of Arthur Andersen, which was one of the five largest audit and accountancy partnerships in the world. In addition to being the largest bankruptcy reorganization in American history at that time, Enron was attributed as the biggest audit failure. Issue: Enron, once the countries seventh-largest company according to the Fortune 500, is a good example of how greed and the desire for success can transform into unethical behavior. Good ethics in business would be to compete fairly and honestly, to communicate truthfully and to not cause harm to others. These are things that Enron did not seem to display, which led to Enron’s operations file for bankruptcy in 2001. Enron’s scandal has become one of the most talked about forms of unethical business behaviors. The company’s collapse resulted from the disclosure that it had reported false profits, used accounting methods that failed to follow generally accepted procedures. Both internal and external controls failed to detect the financial losses disguised as profits for a number of years. Enron’s managers and executives retired or sold their company stock before its price went down. Enron employees lost their jobs and most of their retirement savings invested in Enron stock. Enron’s dishonesty and misleading business ethics...
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...Yvonne Williams Professor Levi Beckwith Accounting 241 November 26, 2011 The Enron Accounting Fraud Scandal Enron was a Natural Gas Pipeline Company in Houston, Texas in 1985. It was formed as a result of merging of 2 natural gas Pipeline companies, Houston Natural Gas and the InterNorth. Enron was the epicenter of the life in Houston and was defined as the architectural rhythm of the Houston’s skyline. Enron was the innovator (market maker) in the energy trading business that provided a valuable service. Enron rise to 7th rank in the “Fortune 500” list of companies. There are many accounting scandals that have occurred throughout United States. Many scandals occur even without outsiders knowing anything that had occurred. Companies try their best to keep many of the accounting scandals quiet. There is political and business fraud happening and no one ever knows. Company’s wants to admit that there was a problem or that people within the company are not trust worthy. When executives in large corporations take scandals seriously, there is no way of keeping out of the spot light. Unfortunately, scandals are the tip of the iceberg. They represent visible failures and companies could really go down for such setbacks. Especially in Enron’s case during 2001, an accounting scandal could not be kept silent. It was one of the biggest accounting scandals in history and because of fraud, Enron suffered greatly. As the deregulation of electrical power markets...
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...Enron Corporation’s rise involved detrimental decisions that originated from the very beginning of the company and every step there on. These crippling actions hindered the life of this enormous company: • Improper utilization of cash and lack of clarity about the company’s identity which led to the funding of failed ventures • Large payout bonuses, luxuries, management loans • Lack of harmony between management across different divisions and employees • Minimum seasoned professionals with expertise in evaluating risky situations • Utilization of only extrinsic motivation to obtain results and enhance performance • ST results focused and improper growth strategies Not all the actions taken by Enron were bad. I agree that for the success of a company they must bring in the best and brightest people. Extrinsic motivation does bring in results. With this Skilling provided an open environment allowing out of the box thinking. This loose culture increased performance, which led to taking risks resulting in innovation. Enron was originally known as a natural gas company and began to attempt to diversify its revenue stream by implementing power trading, broadband and other market-making activities. Decisions made by Enron promoted the “grow fast” strategy as they began to make acquisitions that provided a backbone to their growth strategy. Many of the strategies developed were great such as creating markets where markets never existed. With the many ideas formulated,...
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...Kisa Jones Eth/316 Ethics and Social Responsibility March 5, 2012 Chuck Thompson In 1985, Houston Natural Gas and InterNorth, Inc merged together to sell natural gas to most gas companies as well as businesses. This merge renamed the companies to Enron which was quickly grew as the largest natural gas company in the US. “Enron’s vision is to become the world’s leading energy company-creating innovative and efficient energy solutions for growing economies and better environment worldwide.” (www.thesmokinggun.com) Enron became a multibillion dollar company out of Omaha, Nebraska founded by Kenneth Lay, Andrew Fastow, and Jeffrey Skilling which relocated in Houston, Tx. In the late 90’s, the gas market changed from government regulations to competitions deciding on the price of energy. With the new change, Enron began selling its product to businesses as the intermediary instead of the primary supplier. Enron began trading contracts from suppliers and issued long term contracts to pipeline companies instead of buying and selling natural gas. The company began to see large increase in revenue and began investing in other businesses. This mass change within the company began the rise and fall of Enron. The rise and fall of the company was because of failure by unethical management decisions and business choice. Enron began borrowing money from to invest in new business projects to maintain its constant growth. To keep the earnings from the eyes of investors...
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...Enron Development Corporation: The Dabhol Power Project in Maharashtra, India if you are Rebecca Mark in 1995, what will you do? After nine years of an obvious debacle, it seems that Enron and the Indian government have reached a state of impasse, where a sustainable long term relationship cannot be achieved. Enron has chosen to terminate the agreement by offering to the Indian Prime Minister Enron's 65% equity in DPC for US$1.2 billion and offshore debt for US$1.1 billion. Various political parties have consistently used Enron as an issue to gain the masses' approval and thus political power. Given the size and the "foreign" nature of the investment, Enron will constantly stir political unrest unless it gives in to the terms of the party in power. Difficulty in predicting and understanding local political conditions and coping with the constant threat of forced re-negotiation The agreement (PPA) was flawed from the beginning and unless the company sees the error of its ways, reviews from the World Bank and other committees would always reflect that there was a one-sided deal and would lead to a protracted debate of legitimacy. MSEB's capacity to pay DPC in the next few months is seriously doubtful. Though the Indian government has a guarantee, paying DPC will likely bankrupt MSEB and will lead to a threatening major dispute between MSEB and DPC. If Enron had wanted to cut its losses, it should have let the project end in Phase 1. It need not have negotiated for Phase 2 financing...
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...those before, but in the business word gathering data or research information may have dire consequences like peoples livelihood. As in the article from Cheryl Lozano-Whitten, regarding Eron and perceptions of personality in a case of unethical decision-making, the article visits the unethical view on business research and decision making. Lozano-Whitten, research question is why some people are more apt to engage in unethical behavior as their power increases (Lozano-Whitten, 2010). The article goes on to reveal how she gathered the research and how she is going to apply it. Lozano-Whitten goes on to say the organizational culture in itself influences unethical behavior because of the definition of authority relationships and responsibility for the consequences of actions (Lozano-Whitten, 2010). Within that statement she states that individuals in lower positions are expected to carry out the orders from those who have legitimate authority even if the orders conflict with that person’s value of ethics. Lazano-Whitten hypotheses of the article is that one’s personality attributes have an effect on the decision making process depending on the event is positive or negative. She goes on the validate this idea by gathering newspaper and magazine articles focusing on quotes from Kenneth Lay and Eron going back to December 1991. With the information Lazano-Whitten gathered she notices how Kenneth Lay positive and negative personality traits affect his decision making depending on his...
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...Reporting Practices and Ethics Paper Nicole McLaughlin HCS/405 December 8, 2014 Jack Heinen Reporting Practices and Ethics Paper This paper will seek the financial reporting practices, ethical standards, accounting principles, corporate compliance, ethics, or fraud and abuse in the articles that was chosen to be reviewed. Financial reporting in a medical office or a healthcare organization relies on financial data to be close to real time as they can get it. The financial reporting has advantages such as analysis, visualization, and assistance in decision-making ("Financial Reporting", 2009). Chief financial officers use the financial reporting to help identify the profits and the cost of the healthcare organization. Financial reporting will lead the financial personnel to quantified, data-driven choices which will benefit them with accurate planning, forecasting, and budgeting ("Financial Reporting", 2009). Financial reporting can aid in to reduce a cost, profitability, predict and respond to changes in the market ("Financial Reporting", 2009). Ethical standards in a healthcare organization should be guided by integrity, serves as a role model, and support a culture that provides high-quality, cost-effectiveness health care which helps the ethical behavior and practices of individuals throughout the organization ("Creating An Ethical Culture Within The Healthcare Organization", 1992-2011). It does not matter if the person is a gift shop manager or a CEO of a four star...
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...degrees from Yale and Georgetown University. Juliet Giraso, who wrote the article "Social Media - A Disastrous Distraction [opinion],” believes media has become a dangerous distraction. Giraso is a student at the Gashora Girls Academy. These authors use ethos by having credibility. Anderson argues how violent images and vulgar language in media have a negative effect on young people and don’t teach a Christian worldview. He is able to support his argument by using the rhetorical device logos. He uses Leonard Eron's long-term study to persuade his readers. The study consisted of Eron studying children at the age of eight, then again at eighteen, and he concluded that having a television habit influences aggressive behavior (Anderson 1). Eron also concluded that the more violent the programs were the more aggressive their behavior was: "The effect of television violence on aggression is cumulative" (Eron). Anderson also added this study to appeal to cause and effect of television and aggressive behaviors. Television also has the power to...
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...Aggression and Violent Behavior 10 (2004) 99 – 128 Does viewing violent media really cause criminal violence? A methodological review Joanne Savage* Department of Justice, Law and Society, American University, 4400 Massachusetts Avenue, NW, Washington, DC 20016-8043, USA Received 9 September 2002; received in revised form 26 October 2003; accepted 30 October 2003 Abstract The topic of media violence has been the subject of heated debate in recent decades. There is a vast empirical literature on the effects of television on aggression but no published comprehensive review has ever focused on those studies that use criminal aggression as their outcome. The present paper represents an attempt to fill this void and provide a resource for those who do not wish to delve into four decades of original research in order to assess this line of investigation. Studies are evaluated based on contemporary standards of research in the field of criminology. Although the possibility that television and film violence has an impact on violent criminality remains, it is concluded here that, despite persistent published reviews that state the contrary, the body of published, empirical evidence on this topic does not establish that viewing violent portrayals causes crime. D 2003 Elsevier Ltd. All rights reserved. Keywords: Television violence; Media violence; Violent crime 1. Introduction A vast empirical literature on the impact of television exposure on aggression has accrued over the...
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...It is the year 201. Football tryouts are just around the corner. Twenty to forty athletes enter tryouts scared of what they might face in the next couple of days. After a couple minutes of registering, the coach enters, the drills begin. Minutes turn into hours, hours turn into days, and finally tryouts have reached its end. The time had come for the team roster to come out. Every athlete waited impatiently for the coach to enter. A few moments later the coach enter with a roster in his hand. “If your name is called please state what school you attend then pick up your jersey at the door,” commanded the coach. Names began to be called and the athletes began to call out their schools. “Last but not least Eron Morgan,” called the coach with pride. “Sir I am homeschooled.” The coach looked at the athlete and said, “Have a seat son. Brandon Walker.” Sadly this is how our state stands on the topic of homeschooled students participating in high school sports. Although athletics is a huge focus in the 21st...
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...TEMA 1: Decisiones financieras y su impacto en la riqueza de los accionistas (capítulo 2) 1. Los accionistas de la empresa “ARACAJU S.A.” han realizado un aporte de capital inicial de UF 25.000 enterado a través de 10.000 acciones comunes para comenzar su negocio. La empresa requiere de una inversión inicial de UF 40.000 cuya rentabilidad media es de 18%. Además, la empresa desea pagar un dividendo inicial de UF 7.000. Suponga además que la tasa del mercado es de 13% y que está en un contexto de 2 períodos. Se le solicita: a) Demostrar que los accionistas actuales están indiferentes entre financiar lo que falte con deuda o emisión de acciones. (10 puntos) Datos: Inversión Inicial Io=U.F.40.000 Dotación Inicial Yo=U.F.25.000 Números de Acciones No Acc.=10.000 Tasa de Mercado r =13% Rentabilidad Media TIR promedio=18% Dividendos en t=0 DIVo=$ 7.000 ------------------------------------------------- VAN= -Io+F1(1+r) Despejando F1: F1 =Io*1+TIR promedio F1 = 40.000*(1+18% )=47.200 ------------------------------------------------- F1= 47.200.- VAN= -40.000+47.200(1+0,13) ------------------------------------------------- VAN=1.769,91 El valor de la empresa en t=0 es el valor presente de los flujos de los proyectos = Io + VAN = 40.000 + 1.769.91= 41.769,91 FUENTES = USOS DIVo+Io=Yo+Bo 7.000+40.000=25.000+ Bo Bo=22.000 Entonces t=1 B1=Bo*(1+r) B1=22.000*(1+13%) ...
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...Television and Media Violence – Affect on Children Exposure to Violent Television Causes Aggressive Behavior in Children Prepared for Mrs. Martha Jagel, Professor Rogers State University Prepared by Ashton Duncan, Student Rogers State University June 20th 2013 Television is the most powerful medium the world has ever seen. Never before has it been possible to communicate and so strongly influence millions of people at the same moment right in their own homes. But its misuse has been felonious, and society is paying an increasing price (Langone, 1984). Almost weekly the press carries some story about the harmful effects of television on children. Parent-teacher lobbyists wring their hands about the violence depicted on Saturday morning children''s programs. Nutritionists decry commercials that tout sugar-laden junk food to youngsters. Consumer advocates clamor against the deceptive marketing of children's toys. In Washington, D. C., politicians anxiously express their regrets, then turn to more pressing business (Landesman, 1995). This paper intends to address the behavioral effects that violent television has on children. Violence and television has been the subject of numerous controversial studies for the past thirty years. The most persistent questions have concerned aggressive, anti-social, or delinquent behavior and their link, if any, to violent television entertainment (Paik & Comstock, 1994). Numerous articles, written on almost...
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...Pathophysiology of cellulitis in adults. Cellulitis, a bacterial infection of the skin and underlying tissue, is a common presentation to Emergency Departments (ED). The clinical spectrum of presentation can vary from local inflammation to diffuse inflammation involving a whole limb, to more severe, even life threatening presentations of necrotizing fascitis and associated sepsis. The rationale for choosing this condition is to enable me to efficiently differentiate between those cases that require immediate medical or surgical intervention and treatment and those that can be managed effectively as an outpatient, and to gain a keen understanding of the pathogenesis of the condition. The terms cellulitis and erysipelas are often used interchangeably and current usage tends to regard erysipelas as a form of cellulitis rather than a separate entity, making clear distinction difficult (Hay 2004, Kilburn et al 2010). Erysipelas affects the upper dermis and superficial lymphatics, with distinctly raised lesions and clear lines of demarcation between involved and uninvolved tissue. Cellulitis extends more deeply, involving the deeper dermis and subcutaneous fat and lacks the distinctive anatomical features of erysipelas. For the purpose of this essay I will be using the term ‘cellulitis’ to refer to both conditions. This essay will endeavor to discuss the incidence, its clinical presentation, risk factors, differential diagnosis, pathophysiology and classification according...
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...Nicholas Petracca WMST 101.01 Individual Research Paper Dr. Gillespie Violent Masculinity: How American Society and Media Glorify Violence in the American Youth By it’s anthropologic definition, masculinity is anything that men think and do. It is anything that men think and do to other men. And lastly, it is the idea that some men are innately, or are acknowledged to be, more macho than other men (Guttman 93). When we consider those in their childhood and adolescence stages, even though they aren’t men, they are nevertheless affected by the constructs of masculinity. In this paper, I intend to show how American Society and popular media combine to construct a masculinity norm that glorifies violence, especially among teens, adolescence, and children. Before we look at how masculinity can lead to violence in our culture, we must first unearth how masculinities are constructed, both by mainstream media and by societal norms. Perhaps the most crucial aspect of masculine and feminine studies is that gender is a perception that is socially constructed (Craig 2). Academics are cautious to separate sex—a purely biological difference—and gender—a label that is used to illustrate the essential qualities that society attributes to members of a particular sex. As a result, masculinity becomes a term that we must explain. It is widely recognized that American society and popular media are responsible for shaping masculinity, so it is only logical to that these...
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