Enron and Organizational Behavior The book I chose to read for my book report was The Smartest Guys in the Room: The Amazing Rise and Scandalous Fall of Enron by Bethany McLean and Peter Elkind. The book was published by the Penguin Group and copyright (C) Fortune, a division of Time Inc., 2003. The Smartest Guys in the Room is about Enron’s rise and fall. Enron was created in 1986 from a combination of InterNorth and Houston National Gas which is basically a natural gas pipeline company
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provide arguments that support the idea of business and management as a profession. Khurana, Nohria and Penrice (2005) strongly argue that business management should be a profession in order to prepare managers on how to conduct themselves in an ethical behaviour, employ proper judgement while making business decisions and maintain trust internally and externally. This concept maintains that 4 factors are crucial in order to determine the success of management as a profession which is a standardised
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A7 Case Incident: Enron, Ethics, and Organizational Culture 1. I believe that the main cause of the meltdown was because of the management. Root causes lie in leadership and the control environment. Ethically, they tried to make things disappear through their bankers and accountants. They tried to legalize all of the non-performing assets, and other illegal part taking, they eventually we caught. Ambition wise, their goal was to be number one on the Fortune 500 list. 3500 SPE’s were created
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organizations. I would begin with elaborating what ethical culture means, then taking it over to highlighting its need, pondering over the reasons -‐ so as to why unethical culture prevails and then study about ethical leadership. I would like to conclude by, bringing it to
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Arthur Andersen contribute to the Enron disaster? Arthur Andersen (AA) contributed in several ways to the disaster of Enron. AA collected fees for consulting advice and approved as auditors and consultants the structure of Special Purpose Entities (SPE). The SPE’s were used to hide Enron’s true financial situation. False profits were generated, losses were hid, and financing was kept off of Enron’s consolidated financial statements. The auditors did not enforce Enron to institute internal controls
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Introduction The problem to be investigated is how the correlation between trustworthiness, leadership and ethical stewardship influences organizational members to trust their leaders, thus operating a successful organization. In order to understand how these three elements merge in order to create a culture of trust within the organization, we must investigate each of the three elements and understand what an organization is. Organization People working together in a structured environment
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Introduction The problem to be investigated is how the correlation between trustworthiness, leadership and ethical stewardship influences organizational members to trust their leaders, thus operating a successful organization. In order to understand how these three elements merge in order to create a culture of trust within the organization, we must investigate each of the three elements and understand what an organization is. Organization People working together in a structured environment
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Enron Managerial Organization Ismael Cruz University of Phoenix LDR531 Instructor Jerry Kahn 02/27/2012 Enron Managerial Organization Organizational behavior theories help manage organizations with managerial issues, such as Enron, an energy company based in Houston, Texas, as in October 2001, revealed the largest accounting failure and internal financial corruption in U.S. history. Perhaps, the lack of transparency, and dishonest executives cause the company’s failure. The lack of specific
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History knows many similar incidents where a system takes over, where people in disdain look in retrospect, saying, how could something like that have happened? Enron case is a testament to human nature, of the frail nature of human morale. According to Hamalainen and Saarinen (2007) it seemed that in the early years of Enron Kenneth Lay genuinely believed in Christian values, acted altruistic and represented age-old virtues of good life that are supposed to bring good to the whole system
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How Ethical CEOs Create Honest Corporations A book report We have seen in recent corporate history a litany of corporate scandals that rocked the foundations of the business world. Huge corporations whose economic outputs are larger than most of the developing countries have suddenly imploded under the weight of stock manipulation, unscrupulous accounting procedures and deliberate enculturation of business competitiveness anchored on ‘doing whatever it takes to win’. Small ethical cracks
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