Study 1: Enron The story of Enron is one of corporate greed and intense competition. Former Enron executive Jeffrey Skilling appears to be the person that created such competition between employees. He created a system where employees are ranked every six months, the employees ranked in the bottom 20% were forced out of the company. This ranking system led to a belief that high performance meant everything to the company. Ethical behavior was falling by the wayside at Enron and top executives
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Enron the Fallen Tiffany Califf Professor: Karina Arzumanova LEG100014VA016-1116-001Business Law I July 24, 2011 Describe how Enron could have been structured differently to avoid such activities. Enron’s leaders had the work ethic of only fighting for themselves and if others got hurt it was no big deal hurting. Enron had that it’s a dog-eat-dog thinking. This type of thinking would, in the end, be the demise of Enron. Enron focused on short-term gains. The accounting tactics of Enron
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matter how size. Ethics dictate the actions and decisions of every individual in a company or firm. Ethical standards are set by the owner or CEO and filter down through the rest of the company. The owner’s, or CEO’s, behavior toward employees, customers, the community, investors, and vendors affect the behavior of his employees. The employees look to the CEO to set the standard. “Observing high ethical standards is sound business strategy -- resulting in customer loyalty, higher employee retention
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INTRODUCTION Enron was formed during 1985. Enron was a very powerful company that was doing very well in the market. Enron had been a power supplier to utilities. Its business began through the merger of Houston Natural Gas and Omaha-based Inter North. In the following 20 years, Enron grew quickly and became the largest energy trader in the world. By the end of the twenty century, Enron had many honorable titles, such as “one of the world’s leading electricity, natural gas, and communications
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wrong and to understand the effects that their products and services have on the consumer as well as the environment. Business ethics has come under scrutiny over the past several years thanks to such companies as Enron, and more recently BP. As a society we are faced with ethical dilemmas daily and our culture is shaped by how we handle these situations. A Code of Ethics policy is used in most businesses today to establish acceptable behaviors and actions expected among the employees and executive
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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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A. The Implications for corporate governance and financial institutions In Enron’s case, we may see that the principle weakness of corporate governance today is the excessive concentration of power in the hands of top management. Enron involve allegations of massive accounting fraud and huge losses in shareholder value. In May 2002, the Business Roundtable released its Principles of Corporate Governance. This is a set of principles intended to assist corporate management and boards of directors
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The Fall of Enron 1. Introduction Although Enron went bankrupt and disappeared ten years ago, the impacts it has made on the ethical standards never faded. It took Enron 16 years to go from about ten billion dollar assets to more than sixty-five billion dollar assets, and took twenty-four days to go bankrupt. (McLean & Elkind, 2004) Enron, which once ranked as the seventh-largest company on the Fortune 500 and ranked as the sixth-largest energy company in the world, on December 2, 2001
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Personal Can Ethics Get Johnnie Farmer Strayer University Leadership and Organizational Behavior – BUS 520 Christopher Hase January 15, 2011 How Personal Can Ethics Get? Depending on the leadership of an organization, ethical decisions can be influenced. Personal values and organizational policies and procedures help to understand decisions made in the case study “How personal can ethics get?” Background Can a persons ethical decisions be compromised in organizations? Personal values and
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2011 Abstract When investigating society’s professional values and ethics one would find that there are varying opinions on what is and is not ethical. In a world of propaganda, it is a rarity to find a professional, let alone a business that has much of a conscience. In today’s society there are two ways to advance a career. It can be done the ethical way through hard work, following the rules and doing the job correctly. An in-depth look into how these two values can be an asset to a professional
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