Prescriptive Approaches to Ethics at Enron Enron was a global energy firm that filed for bankruptcy protection in 2001. The firm’s senior managers had engaged in fraud for an extended period through a scheme in which partnerships owned by the managers could receive payment for goods and services never provided to Enron. In addition, the firm’s external auditing firm, Arthur Andersen, was complicit in the fraud by knowingly certifying false financial statements as accurate. Arthur Anderson participated
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Consequentialists’ theory: Many philosophers believe that the rightness and the wrongness of any action are determined from its consequences and people who hold this view is known as consequentialist. Consequentialism is general approach to ethical dilemmas which inquire about the consequences to relevant people of making a particular decision. So basically consequentialism word itself suggests that it is an ethical approach which “depends on the consequences”. This view is also sometimes referred
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Enron Case Study Seven years after the fact, the story of the meteoric rise and subsequent fall of the Enron Corporation continues to capture the imagination of the general public. What really happened with Enron? Outside of those associated with the corporate world, either through business or education, relatively few people seem to have a complete sense of the myriad people, places, and events making up the sixteen years of Enron’s existence as an American energy company. Some argue
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Enron Case Study Seven years after the fact, the story of the meteoric rise and subsequent fall of the Enron Corporation continues to capture the imagination of the general public. What really happened with Enron? Outside of those associated with the corporate world, either through business or education, relatively few people seem to have a complete sense of the myriad people, places, and events making up the sixteen years of Enron’s existence as an American energy company. Some argue Enron’s record-breaking
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Russell Bettinger BUS-340 – Ethical and Legal Issues in Business 26 October 2014 Esther Lahargoue Analyzing Ethical Behavior Bernard Madoff was a renowned stockbroker, financial adviser, and served as the chairman of NASDAQ. Bernie Madoff is also solely responsible for the largest accounting fraud in all of American history. In December 2008, Madoff admitted to the federal authorities that the wealth management branch of his business, Ascott Partners, was a full on and elaborate Ponzi scheme
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Why Enron Failed By Suzy Bills In 2001, Americans were appalled to learn of the unethical practices carried out by leaders and other employees of Enron (as well as its accounting firm, Arthur Andersen). Enron used various methods of deception to appear more profitable than it really was, including through creating off-the-book entities to which Enron transferred its substantial debt (Jennings, 2005). While the company’s stock rose, so did its debt, and company leadership began using insider information
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one person in charge of making moral decisions. These selected few should set strict moral and ethical standards when conducting business for the benefit of the company, their employees and the rest of the world. In philosophy, there are several subsections that teach the various kinds of moral and ethics. Some of these subsections can be applied to the morality of a corporation while others, when applied, can cause controversy and harm. The following paper will discuss why corporations should be morally
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Threats to Compliance with the Code of Conduct by Professional Accountants. With the expanding business in the modern world, issues arise on professionalism of Independent and Internal Auditors. Is it whether the Professional Accountants follows the ethical code provided by the International Ethics Standards Board for Accountants in order to provide true and effective financial reports to the internal and external users? Professionals are expected to conduct themselves at a higher level than most others
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Ethical Analysis Kimberly Kendrick MBA/5310 January 29, 2014 Mr. Van Buskirk Ethical Analysis The problem with scams is that you never know until it is too late. People who obtain money from dishonest means could spend the course of a lifetime and never pay stakeholders back. Stakeholders and shareholders alike are in a uniquely vulnerable position which becomes clear in most business schemes (“The Biggest Stock Scams of all Time”, 2011). Corporate scandals
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prevented the backlash and whitewater effect of Nortel’s bankruptcy, but due to corporate ties within the government and the Securities and Exchange Commission the many CEO’s continued to elude the government auditors and the stakeholders. From an ethical perspective, there were several factors that contributed to the rise and fall of Nortel. The initial CEO and founder of Nortel, John Roth, demonstrated altruistic behavior because he did want the company to profit, the investors to profit, as well
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