management and employee trust relationships, give examples of scandals which led to distrust in management, and subsequent legislation and ethics policies that were created as a result of these scandals. Trust is invaluable in the organizational environment. Organizational behavior professors Steven McShane and Mary Ann Von Glinow define trust as “the positive expectations one person has toward another person in situations involving risk”. In order for an organization to efficiently perform the purpose
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Strategic Management Process Paper MGT/498 March 10, 2014 Abstract: This paper explains the role of ethics and social responsibility when developing a strategic plan, and includes considering stakeholder needs and agendas during this process. This paper uses an example of a company overstepping ethical boundaries for stakeholder agendas, and what types of preventative measures could be taken to avoid this type of situation. Essay: Success
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Enron Ponzi Scheme Enron Ponzi Scheme The Enron scandal was a corporate scandal that involved the American energy giant Enron Company based in Houston, Texas and the auditing and accountancy-consulting firm Arthur Andersen. The scandal was uncovered in October 2001. Enron Corporation was undoubtedly a giant corporation and in fact, some individuals suggest that it was one of the largest energy companies’ world over. It comprised of a multibillion corporation that employed several individuals
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Stack Ranking: Brilliant Management or Inherent Absurdity Ray Johnson MGMT E-4000 Organizational Behavior 1 August 2012 Abstract Employee stack ranking is a performance measurement system that requires every manager to rank its employees from excellent to poor. Stack ranking was popularized by Jack Welch at General Electric in the 1980’s. Since that time it has become a popular management technique. The use of stack ranking has many demonstrated successes, but many managers and business
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for they have the control to provide negative or positive feedback. There have been many examples where stakeholder’s wealth and interests were extremely affected by fraudulent or at least unethical management decisions. These examples include ENRON, WorldCom, Tyco and many more. Of course, business ethics is affected by inside trading and bribes. It turns out that the extent to which professional managers’ value business ethics can have a substantial impact on shareholders, stakeholders and
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mechanism. In other words, the role of corporate boards is to monitor executive management to make sure that they manage the company in a way that maximizes shareholder value by managing the company with their best interests in mind. The scandals of Enron, Tyco International, WorldCom, and others cost investors billions of dollars and shook investor confidence in the nation’s stock markets. The global economy plunged into a recession in 2008 partly because large banks took unprecedented risks and overleveraged
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performance and brand value. It can also be explained by taking an opposite perspective: Without proper CSR behavior, brand value could be negatively affected. Take Enron Corporate as an example. Enron was an American energy, commodities, and services company, which was named as "America's Most Innovative Company" by Fortune for six consecutive years (Healy & Palepu, 2003). However, Enron took an
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attention to academic journals and research. The paper will derive its arguments from veteran theories like the Utilitarian and the Kantian theories. The paper will also relate its discussions with the case study about Enron a USA company that collapsed as a result of unethical behavior in the management. Some of the components that will be highlighted in the paper include; the importance of an ethical culture in an organization, the dangers of lack of ethics in an organization and the strategies that
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business ethicists to discuss the Enron scandal. Panelists included Kirk O. Hanson, executive director of the Ethics Center and University Professor of Organizations and Society; Manuel Velasquez, Dirksen Professor of Business Ethics, Department of Management; Dennis Moberg, Wilkinson Professor of Management and Ethics, and Martin Calkins, S.J., assistant professor of management. Edited excerpts from their conversation appear below: Manuel Velasquez: What went wrong at Enron? In ethics, explanations tend
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This paper will address and analyze the different ethical issues and the questionable accounting practices that occurred to one of the largest accounting firms in the United States. We will look and review the mandated requirements for legal compliance (from Chapter 4) and determine which requirements apply to the Arthur Anderson case. Then we will discuss how the issues with the Arthur Anderson case may have played out differently if the Sarbanes-Oxley Act had been enacted in 1999. Next we will
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