Sherron Watkins—Revelations of a Letter Who Is Sherron Watkins? Sherron Watkins gained fame as the so-called “whistle-blower” in the Enron accounting scandal. “Enron hid billions of dollars in debts and operating losses inside private partnerships and dizzyingly complex accousnting schemes that were intended to pump up the buzz about the company and support its inflated stock price.” Watkins wrote two letters, one anonymously, to Enron’s chairman, Kenneth Lay. In those letters she “exposed
Words: 2155 - Pages: 9
Licensed to: iChapters User Licensed to: iChapters User Business Ethics: A Stakeholders and Issues Management Approach, Fifth Edition Joseph W. Weiss VP/Editor-in-Chief: Melissa Acuña Acquisitions Editor: Michele Rhoades Developmental Editor: Daniel Noguera Editorial Assistant: Ruth Belanger Sr. MarComm Manager: Jim Overly Marketing Manager: Clinton Kernen © 2009, 2006 South-Western, a part of Cengage Learning ALL RIGHTS RESERVED. No part of this work covered by the copyright herein may be reproduced
Words: 18749 - Pages: 75
ENRON- A Study of FAILURES Who, How, Why! Arthur Gudikunst, Ph.D. Revised: April, 2003 Professor of Finance Finance Department Bryant College Introduction: The saga of the ENRON Corporation has been unfolding in the media for well over a year. In the span of only three years, ENRON has gone from public and professional acclaim of the company and its senior executives to scorn, infamy and bankruptcy. Its public auditing firm, Arthur Andersen, has basically been destroyed, as well
Words: 5713 - Pages: 23
effectiveness of corporate governance in the post-Enron era through the implementation of financial statement insurance. This paper gives a brief history of the purpose of financial statements as well as the importance of external auditing of financial statements. It gives examples of the corporate governance failures of companies like Enron and WorldCom. It covers how and why these failures happened and reviews the grave consequences of the failures. It also takes a brief look at the laws that have
Words: 2501 - Pages: 11
Toy LEG100 – Winter 2012 January 29, 2012 Question #1 - Summarize the actions that lead to the lawsuit. In the suit Board of Trustees of Community College District No. 508 v. Coopers & Lybrand, the Board filed suit due to Cooper’s failure to report discrepancies and inappropriate investments by the Treasurer and Chief Financial Officer Phillip R. Luhmann. According to Kilbride (2003, p.1), “in 1988, 1990, and 1992, the Board Adopted Resolutions authorizing its treasurer to invest
Words: 1396 - Pages: 6
Business Ethics Ines Romero College of the Southwest ECO 2213 Freedom, Ethics, and Free Enterprise Professor Tom Wilson 9 April 2009 Business Ethics Business ethics is a process of responsible decision making that we cannot run from. Perfect example, in reality of decision making gone totally bad can change all that are connected. Such as, Enron’s collapse came about by decision making that lead to scandals and eventually to ruins. This multi-billion dollar company disobeyed
Words: 1188 - Pages: 5
Accounting ethics is primarily a field of applied ethics and is part ofbusiness ethics and human ethics, the study of moral values and judgments as they apply to accountancy. It is an example of professional ethics. Accounting introduced by Luca Pacioli, and later expanded by government groups, professional organizations, and independent companies. Ethics are taught in accounting courses at higher education institutions as well as by companies training accountants and auditors. Due to the diverse
Words: 5921 - Pages: 24
Enron is a Houston based energy firm which was credited to create market trading in energy. In just sixteen years, it becomes the world’s largest energy trading company. Offered its services to thousands of customers around the world including Wholesale Services, Energy Services and Global Services combing broadband and transportation services. It experienced a meteoric rise and has 22th rank in the fortune’s 100 best companies list in America in 2000. With the energy crisis in California, Enron
Words: 1292 - Pages: 6
The Collapse of Enron Who were the stakeholders involved in, or affected by, the collapse of Enron? How and what degree were they hurt or helped by the actions of Enron management? Some of the stakeholders were directly responsible for Enron’s collapse. The deregulation of the 1980s presented an opportunity to become the “gas bank” reducing market risk. After this success Kenneth Lay, Jeffrey Skilling and Andrew Fallow became the market makers, buying and selling over 1,800 products. These top
Words: 1122 - Pages: 5
Enron Leadership Orientations Case Analysis Enron’s company culture will be evaluated using four leadership frameworks: Structural, Political, Human resource, and Symbolic. The structural framework will evaluate the architectural and structural design of the organization, its units and subunits, roles and rules, goals and policies. The political framework will evaluate the struggles Enron faced for power and advantage and the competitiveness and scarce resources that create challenge. The human
Words: 3372 - Pages: 14
