organization. This is done with close attention to academic journals and research. The paper will derive its arguments from veteran theories like the Utilitarian and the Kantian theories. The paper will also relate its discussions with the case study about Enron a USA company that collapsed as a result of unethical behavior in the management. Some of the components that will be highlighted in the paper include; the importance of an ethical culture in an organization, the dangers of lack of ethics in an organization
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Case Study: Enron Corporation and Andersen LLP Enron was one of the biggest companies, in the industry of electricity, natural gas, and paper manufacturing. The Company's revenues in 2000 were 111 billion, which made Fortune magazine Comrade crowned her the most innovative in the United States for six consecutive years. At the end of 2001, the company declared bankruptcy with approximately -65.5 billion dollar in debt and the company’s share price fell within a few weeks from a high of nearly ninety
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results mattered in a significantly negative way for the people of New Orleans and Louisiana. On the other hand, some may argue that a focus on results and success breeds corruption. These individuals may point to examples of corporate fraud such as Enron or WorldCom. However, a crucial benchmark of success that every
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By definition, an ethical dilemma is a situation that will often involve an apparent conflict between moral imperatives, in which to obey one would result in transgressing another. When one combines this definition with the many problems employees and management face on a daily basis, you are bound to have plenty of examples for many different kinds of businesses, regardless of what the business is or the line of work. This internal conflict that people experience can cause many issues in today’s
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The Securities and Exchange Commission The U.S. Securities and Exchange Commission (SEC) is a federal agency that provides protection for investors and regulates the bulk of the securities industry including: U.S. stock exchanges, options markets, and other electronic exchanges and securities markets. The Securities Exchange Act of 1934 created the laws that regulated it. The Securities Exchange Act of 1934 is a law governing the secondary trading of securities in the U.S. The commission's division
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vendor and using confidential company information. The ENRON collapse in November 2001 is an example of employee ethics gone wrong. ENRON had one of their employee’s audit company audit ENRON. This is a huge example of how ethics did not play a role in the compliance of the company financial environment. The ENRON scandal made the business and financial world rethink the laws or lack thereof, in place for businesses and their finances. ENRON was so far ahead of the game they were named America’s
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Enron - Were they the Crookedest Guys in the Room? The Rise of the Big "E" In May 1985, InterNorth Incorporated and Houston Natural Gas announced that they would merge. Their combined value was an estimated $2.3 billion. These firms were two of the largest gas pipeline companies in the United States. As part of the negotiations, the chairman and CEO of InterNorth, Sam Segnar, would be the head of the new entity until January 1, 1987, when the chairman and CEO of Houston Natural Gas, Kenneth
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7897XB Course Facilitor FROM: Sam Pat Date: March 24, 2012 Subject: Business Plan for Enron Corporation The purpose of the business plan is to discuss and identify organizational cultural problems which exist in Enron Corporation. The researcher will provide a solution by defining the ideal principles of organizational culture. Also, the researcher will provide an action plan that will transform Enron Corporation into a learning organization. Finally, the researcher will discuss the rationale
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and the text, International Compliance Training Ltd. The research is basically theoretically driven to ascertain if the industry would be better off with regulation or left for participants to operate freely. Introduction: Scandals (such as Enron, WorldCom), the September 11 attack and financial crisis of 2007 and 2008 brought attention to loopholes of legislation that market participants have been taking advantage of for years. It was never the intention of regulation to cause market abuse
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be past in many years was the Sarbanes-Oxley Act. This law forces companies to keep a more watchful eye on internal controls. One of the most famous scandals of 2001 was the Enron scandal. Within a year’s time Enron, and I am paraphrasing Mark Jikling, who prepared a CRS report to congress on the financial downfall of Enron, went from being a multibillion dollar company with stocks at $80 plus price per share to a bankrupt company with shares dropping to $.70 price per share due to the lack of internal
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