scandals and eventually to ruins. This multi-billion dollar company disobeyed the rules of business ethics and would later pay which brought about their collapse by ethical failure. To avoid future failures towards business and personal tragedies we must understand that ethics failures equal business failures. The fall of Enron in an ethical standpoint affected stockholders, workers, families and about one billion in stock value for stockholders. Business ethics is basically concerned more towards
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Journal of Business Ethics (2008) 77:431–449 DOI 10.1007/s10551-007-9358-8 Ó Springer 2007 The Dark Side of Authority: Antecedents, Mechanisms, and Outcomes of Organizational Corruption Ruth V. Aguilera Abhijeet K. Vadera ABSTRACT. Corruption poisons corporations in America and around the world, and has devastating consequences for the entire social fabric. In this article, we focus on organizational corruption, described as the abuse of authority for personal benefit, and draw on Weber’s
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The Rise and Fall of Arthur Andersen LLP In October 2001, Enron was accused of overstating their earnings in the last few years in excess of $1 billion dollars (Doost, 2001). At the same time, Arthur Andersen, one of the most reputable auditing firms, was responsible for auditing Enron’s financial statements. The Security Exchange Commission (SEC) ordered Arthur Andersen to provide all relevant Enron documentation and auditing files. Going against Arthur Andersen’s impeccable reputation of honesty
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interest? | 4 | Other issues of concern * Barriers to entry and lack of competition * Transparency | 555 | The importance of reputation | 6 | What went wrong? | 7 | The need for regulation | 7 | Can we trust the rating agencies? * The Enron Case Study * The Parmalat Case Study | 889 | Are rating agencies guilty? | 12 | The sinister power of rating agencies | 13 | A world without rating agencies | 14 | Conclusions | 15 | References | 16 | The protagonists of the world market
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College of Business and Accountancy Notre Dame University Cotabato City Good Governance and Social Responsibilities Management OO6 Jasmayra A. Salem BSAct-3 1st semester, 2014-2015 October 2014 Operation GRILL RITE I. SUMMARY Grill Rite is an old-line company that started out making wooden matches. The company entered the electric barbecue grill market with five models of grills and it sells nationally. The plant where the company produces barbecue sets is located in a small
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the company’s requirements and the behaviors needed to evaluate their own decisions. Ghosh states (2008), “The current research suggests that the top management must set the tone by professing and embracing integrity” (p. 68-87). Companies such as Enron and World Cam are known today for their legal problems. Ghosh states (2008), “Enron's unrelenting emphasis on earning's
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Parmalat is Europe’s Enron. By: January 23, 2011 Parmalat is a corporate disaster comparable in size and complexity to its major U.S. rivals, and thus quickly call “Europe’s Enron.” In Italy in 1961, Calisto Tanzi took over family preserved-meat business, which he went on to found as Parmalat. After going public in 1990, Parmalat expanded at a breakneck pace during the rest of the decade, acquiring operations in the United States, Germany, France, Brazil, and South Africa. From 1995 through
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of the shareholder is that they themselves will hire suitable people to ensure that proper governance is in place and that the structure will not be affected. Once hired it is the responsibility of the directors to effectively allow prosperity of leadership yet at the same time ensure a successful report to shareholders. One limitation for the board would be the fact that they like everyone else are held responsible for upholding laws, regulations which can or cannot affect their actions in the running
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Principles: How it impacts on Life in General and in Business Based on some of the recent history ethical failures committed by executives from huge organizations like Enron, Arthur Andersen, PricewaterHouseCoopers, so on and so forth, if history teaches us anything is that ethics and character count a whole lot, especially in the business world. These executives, by their failures of ethics, all because for their personal benefits, had destroyed and tarnished not only the organizations
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VANITA YADAV C.V. BAXI CORPORATE GOVERNANCE FAILURE AT SATYAM “Why do you want to quit Satyam,”1 the panel member asked the 30-year-old employee being interviewed. Satyam Computer Services Ltd (“Satyam”) was India’s fourth-largest computer services company; however, many employees had left and applied for new jobs after news of a US$1.4 billion corporate fraud at Satyam became public in December 2008. 2 Satyam’s governance failure had severely shaken its stakeholders and the global business community
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