How did the corporate culture of Enron contribute to its bankruptcy? The corporate Culture at Enron could have contributed to its bankruptcy in many ways. Its corporate culture supported unethical behavior without question for as long as the behavior resulted in monetary gain for the company. It was describe as having a culture of arrogance that led people to believe that they could handle increasingly greater risk without encountering any danger. Its culture did little to promote the values of
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Table of Contents 1.0 Abstract 2 2.0 Introduction 2 3.0 Questions and Answer 3 4.0 SWOT Analysis 12 5.0 Recommendation 13 6.0 References 14 1.0 Abstract In December 2005, two years after this case was written, the telecommunications industry consolidated further. Verizon Communications acquired MCI/WorldCom and SBC Communications acquired AT&T Corporation, which had been in business since the 19th Century. The acquisition of MCI/WorldCom was the direct result of the
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The Securities and Exchange Commission The U.S. Securities and Exchange Commission (SEC) is a federal agency that provides protection for investors and regulates the bulk of the securities industry including: U.S. stock exchanges, options markets, and other electronic exchanges and securities markets. The Securities Exchange Act of 1934 created the laws that regulated it. The Securities Exchange Act of 1934 is a law governing the secondary trading of securities in the U.S. The commission's division
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of Enron believed their accounting method of mark to market and their off balance sheet partnerships was in the best interest of the organization. Did the auditors from Arthur Andersen believe they had something to hide when CORPORATE GOVERNANCE 2 they erased computer drives and shredded documents during Enron’s collapse? In addition
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Enron - Were they the Crookedest Guys in the Room? The Rise of the Big "E" In May 1985, InterNorth Incorporated and Houston Natural Gas announced that they would merge. Their combined value was an estimated $2.3 billion. These firms were two of the largest gas pipeline companies in the United States. As part of the negotiations, the chairman and CEO of InterNorth, Sam Segnar, would be the head of the new entity until January 1, 1987, when the chairman and CEO of Houston Natural Gas, Kenneth
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On the contrary, the executives of Enron disclosed a great earnings forecast through the media and encouraged investors to purchase Enron’s stocks. They also suggested their employees invest their pensions in Enron’s stock or stock options. Arthur Andersen, the audit company for Enron, helped Enron hide these frauds for five years. Every time when analysts or Enron’s employees expressed their doubts about Enron’s financial condition, Enron would try to keep them quiet and fired them later. Meanwhile
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Only months before Enron Corp.’s bankruptcy filing in December 2001, the firm was widely regarded as one of the most innovative, fastest growing, and best managed businesses in the United States. With the swift collapse, shareholders, including thousands of Enron workers who held company stock in their 401(k) retirement accounts, lost tens of billions of dollars. Investigations of wrongdoing may take years to conclude, but Enron’s failure already raises financial oversight issues with wider
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Accountants handle countless of financial details daily; therefore, accounting professionals are held to higher ethical standards. The AICPA along with regulatory agencies and statutory boards have set up ethical rules and regulations that all members of the accounting profession must adhere to. The AICPA’s Code of Professional Conduct requires that accountants act with integrity, objectivity, due care, fully disclose any conflicts of interest, maintain client confidentiality, and serve the public
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filing bankruptcy at 21 July 2002. The WorldCom filing surpassed Enron and became the largest bankruptcy filing in United States history. Due to its rapid growth, WorldCom is also heavily in debt as they finance the company growth with debt. The collapse of WorldCom did not just affect their employees, retailers, the government but also bankers. WorldCom was a multi-billion dollar telecommunications company that was founded in 1983. The company starts their business under the name 'Long Distance
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that should instill on the persons who were involved in this case. Arthur Edward Andersen built his firm, Arthur Andersen & Company, into one of the largest and most respected accounting firms in the world through his reputation for honesty and integrity. His motto was “Think straight, talk straight” and he insisted that his clients adopt that same attitude when preparing and issuing their periodic financial statements. Arthur Andersen’s auditing philosophy was not rule-based; instead he invoked
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