Business Ethics: Enron Case Study Introduction: Enron was a very powerful company that was doing very well in the market. The value of its share was high and the company was enjoying an overall healthy position as a business. The employees were happy and new recruits would have killed to get a job at Enron. However, this was not to last. Enron enjoyed so much success that it got to its head and it started making all sorts of problems. Enron decided to change its organizational structure
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Looking from different perspectives on how businesses can rise and fall from unethical accounting practices. When you look over businesses such as Enron and Washington Mutual bank you can see the hard lessons of what they had to endure and the end result of the chaos. Take a look for example Washington Mutual they were the one of the greatest banks in America their portfolio was one of the largest. But after acquiring so many mortgage loans it was way too much for the company to handle. Washington
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The US Congress in 2002, set out to change the way companies report their financial situation and accounting practices. Congress believed in order to restore consumer confidence, strict accounting and reporting regulations were called for. Congress wanted the financial picture of a company to be more transparent to the consumer, thus the Public Company Accounting Reform and Investors Act of 2002 was past, more popularly known as the Sarbanes-Oxley Act of 2002, (SOX). (Bainbridge, 2007). SOX has revolutionized
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Enron Corporation (Former NYSE ticker symbol ENE) was an American energy company based in Houston, Texas. Before its bankruptcy in late 2001, Enron employed approximately 22,000staff and was one of the world's leading electricity, natural gas, communications and pulp and paper companies, with claimed revenues of nearly $101 billion in 2000. Fortune named Enron "America's Most Innovative Company" for six consecutive years. At the end of 2001 it was revealed that its reported financial condition
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Running head: ENRON CORPORATION Enron Corporation (former NYSE ticker symbol ENE) Rosetta Foster Strayer University Business Law I – LEG 100 Dr. Dorothy A. Sliben October 25, 2010 Enron Corporation (former NYSE ticker symbol ENE) The ensuing scandal involving the Enron Corporation, Arthur Andersen, the Bush Administration, the ninety-six banks, et al., clearly shows the abuse of power, when corporations, etc. ultimately thinks and/or feel that it is above the law. The effects are
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The Enron Scandal The Enron Scandal Ethics is defined by The American Heritage Dictionary as “The study of the general nature of morals and of specific moral choices; moral philosophy; and the rules of standards governing the conduct of the members of a profession”. The Enron scandal is already part of the history as one of the reasons why Business and Accounting Ethics had become more than ever a major concern in today’s businesses. In this paper we’ll review
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EXECUTIVE SUMMARY This paper investigates about the Enron Corporation and Arthur Anderson. This assignment is to identify the background of Enron and Arthur Anderson and Enron fail. Other than that, identify the business risks that faced by Enron. Moreover, determine the responsibilities of board of directors and steps to improve corporate governance. Besides that, differentiated between rules-based accounting and principle-based accounting and the uses. In addition, there are discussion about
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executives confessing to engage in price gouging, tax dodges, accounting shams, employee rip-offs, and other shady unacceptable acts are coming to light daily. Unethical and illegal practices are documented from the RJR Nabisco scandals in 1988 to today’s Enron, WorldCom, Merrill Lynch, Arthur Anderson, Xerox, and endless other corporations. The world realizes now that corporate greed is not about one-bad company, but large companies in general that have adopted unacceptable guidelines for corporate behavior
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Enron and Apple – A Financial Tale of Failure and Success Enron and Apple – A Financial Tale of Failure and Success 2 Abstract This paper analyzes accounting concepts that contributed to Enron’s demise and inclusion on the list of Fortune’s top ten largest bankruptcy filings in US, and in contrast, looks at Apple’s inclusion on the list of Fortune’s top ten most admired companies and reason for its success. Enron and Apple – A Financial Tale of Failure and Success 3 The Fall of
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Enron When considering powerhouses in trading, electricity, natural gas, and communications throughout the 1990’s, one enterprise easily comes to mind; Enron Corporation. Claiming nearly 111 billion in revenues during 2000, Enron, at the time, was the epitome of innovation; even being named "America's Most Innovative Company" for six consecutive years by Fortune magazine. It came to a great surprise for many that within just a year, the company would be declaring bankruptcy, and ultimately
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