In 2001, the nation was rocked by the collapse of Enron, a multibillion dollar corporation that employed thousands of people and had affiliations right up to and including The White House itself. It is important, in starting, to understand how Enron rose to power and later imploded. Enron itself came to be born as the result of a 1985 merger of Houston Natural Gas and InterNorth-a Nebraska based gas pipeline company. Its most valuable asset and the largest source of honest income, the 1930s-era Northern
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discuss the Enron scandal. Panelists included Kirk O. Hanson, executive director of the Ethics Center and University Professor of Organizations and Society; Manuel Velasquez, Dirksen Professor of Business Ethics, Department of Management; Dennis Moberg, Wilkinson Professor of Management and Ethics, and Martin Calkins, S.J., assistant professor of management. Edited excerpts from their conversation appear below: Manuel Velasquez: What went wrong at Enron? In ethics, explanations tend to fall into three
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Examining a Business Failure: ENRON LDR 531 Organizational Leadership December 5, 2011 . Examining a Business Failure Effective managers and leaders contribute to the organizational success of an organization. Companies lacking strong managerial leaders failing to enforce the ethical code of conduct of an organization are prone to organizational failure. Yukl (2006), states, “One viewpoint is that leadership occurs only when people are influenced to do what is ethical and beneficial
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Chapter 2 THE AUDIT MARKET Revision: 11 September 2012 2.1 Learning Objectives After studying this chapter, you should be able to: 1. Distinguish between different theories of audit services including agency theory. 2. Understand drivers for audit regulation. 3. Understand the role of public oversight. 4. Distinguish between different audit firms. 5. Identify some current developments in the audit market. 6. Portray the series of industry codes of conduct and guidance 2.2 Introduction
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initially named itself HNG/InterNorth but soon renamed itself to Enron. In 1986, Lay became the CEO of Enron and slowly transformed the company into an energy-trading giant. During the time of merger, Enron was largest owner of inter and intrastate pipelines for transporting natural gas. With the help of government deregulation of prices of natural gas, Enron was able to sell its gas at higher prices, which significantly boosted its revenue. Enron pursued further growth by extending its natural gas business
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Ethical Culture Project PART 1: Enron displayed all four cultural dimensions which are: high-risk taking, outcome orientation, aggressiveness, and low/no people orientation as a company. Kenny Lay, who was the CEO and Chairman from 1985-2002, displayed high-risk taking during the Vahalla scandal. He had two oil traders, Louis Borget and Tom Mastroeni that would make bets for Enron on whether the price of oil would rise or fall. This is a risky market because you can lose ten times your original
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------------------------------------------------- Top of Form The Rise and Fall of Enron | The rise and fall of Enron is an important, complex story. In its early days Enron did the right things for the right reason and garnered substantial credibility. Later successful operations were replaced with the illusion of successful operations. In the last phases Enron milked its credibility to sustain operations through loans. When its credibility with lenders crumbled the loan funds dried up and the
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| Enron | A Scandal born out of Greed and Lust for Power and Money | | | Abstract This is a brief summary of the leaders of a successful company that became so greedy in their thirst for power and money they ruined a corporation, along with other prominent corporations and companies, most of all many lives and affected the way business is conducted in this country today. These were not smart people as many would say, but they were greedy and selfish people. The major players of
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Fraud is a serious problem for most businesses today and often technology compounds the problem. In addition, the role of the independent auditor in the detection of fraud is often questioned. (http://www.swlearning.com/accounting/hall/ais_4e/study_notes/ch03.pdf) Fraud is dishonest activity causing actual or potential financial loss to any person or entity including theft of money or other property by employees or persons and where deception is used at the time, immediately before or immediately
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Ten years after the energy and commodities firm Enron collapsed under the weight of a massive fraud, much has changed about how corporate America does business and much, unfortunately, has remained the same, with new frauds and excessive risk-taking exposed all too frequently. "We did learn some lessons and people were more careful, but greed creeps back in again," said Lawrence Weiss, professor of international accounting at Tufts University's Fletcher School of Law and Diplomacy. Before the bankruptcy
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