ENRON: Enron was a giant global corporation that depended on outside credit sources to finance its daily operations. In turn its credit- worthiness depended on its performance as reflected in its share prices. Enron was a corporate superpower. One of the reasons why people felt safe investing in Enron was its size and the inelasticity of its main product – the buying and selling of energy. Energy is a necessity and the quantity demanded will not change much if at all due to higher prices. The energy
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environment is the basis of the entire control system that the organization is establishing. The control environment is the value that is placed on integrity and the knowledge that unethical activity will not be tolerated. It is management’s responsibility to express behavior and attitude that enforces this ethical behavior. The control environment affects the internal control by setting a basis of control activities that safeguard assets, enhance accounting reliability, increase 2- The controls
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“Values and Ethics in the Workplace” Many companies market their brands by creating commercials and advertisements that showcase their commitment towards values and ethics. These marketing tricks draw us in, as consumers and as people because we relate to the commitment that they show. We relate because we all have our own sets of personal values and ethics that we have adapted to our lives. Growing up, our role models, religious beliefs and other influences helped shaped our personal values and
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(Darden CD). However, according to Hatcher (2003), Enron had a culture of “anything goes as long as it makes money”. For example, in a thesis written by Boje, Alder, and Black, the authors claim that Enron used theatre to influence how decision makers accurately or inaccurately interpreted the information presented. As part of this "anything goes culture" between 1998 and 2001 Enron set up a fake Hollywood type trading floor on the 6th floor of Enron corporate headquarters using simulated statistics
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7. A perceived lack of integrity caused irreparable damage to both Andersen and Enron. How can you apply the principles learned in this case personally? Generate an example of how involvement in unethical or illegal activities, or even the appearance of such involvement, might adversely affect your career. What are the possible consequences when others question your integrity? What can you do to preserve your reputation throughout your career? A perceived, or even likely more detrimental to
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accountants follow a simple code of conduct; nevertheless, due to the infamous scandal of Enron, the Sarbanes-Oxley Act of 2002 was constructed to reestablish confidence in the public marketplace. The importance of ethics and integrity are highly significant to individuals in this profession. In fact, ethical behavior in accounting is described as “societies accepted standards of moral behavior that is behaviors as right rather than wrong” (Nickels, McHugh, & McHugh, 2013, p. 91). Therefore, accounting
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talked about subject ever since the Enron scandal occurred several years ago. In the following, the role of ethics and social responsibility in developing a strategic plan, considering stakeholder needs will be explained as well as how a student’s ethical perspective has evolved throughout the program. Due to the fact that the general public is increasingly involved and interested in the activities that businesses do, the businesses must be at their best behavior. Stakeholders and the general
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terminology. Morals are and principals are forms of value, values are a form of belief, and theses four terms represents ethics, in which deals with an individual behavior and the norm to distinguish right and wrong. Ethic; is consist of the four terms, morals, principals, values, and beliefs that people uses to control their behavior. Ethics combine these terms together by the way people think and believe also it dictates how an individual will act and show his or her moral values through their
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Planning and Implementation STR/581 Terry Pancake November 11, 2013 Ethics Reflection Current course readings emphasized the importance of ethical behavior by companies. The word “ethical” has gained more power in the last decade because of foul practices from companies such as Enron, Arthur Anderson, and WorldCom. The unethical behavior of company executives has caused in-depth company reviews by stakeholders no matter the size or reputation of the company. This paper concisely analyzes the
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KaWanda Martin Enron Case January 29,2013 1. The parties that I feel are most responsible for that crisis include: Enron’s top executives, Kenneth Lay, Jeffery Skilling, and Andrew Fastow. Top management made the decisions to acquire the SPEs and to record the transactions of Enron stock for notes receivables. These notes were recorded in the assets section of the balance sheet rather than a reduction to owner’s equity. Kenneth Lay was responsible for not addressing the situation when
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