Sunday, 17 May 2020
4 Ethical Issues with Enron Essay - 1005 Words
There was a vast number of ethical issues raised in the movie ââ¬Å"Enron-the Smartest Guys in the Roomâ⬠but the four I am going to focus on are listed below. Art Anderson, Ken Lay and all of the other executives did a number of unethical things which ultimately brought down Enron and affected thousands of employees and their futures. The bottom line was that each and every one of them acted out of greed for the almighty dollar. 1- Encouraging employees to invest and buy stock in Enron when they knew the truth about the lack of value in the stock. As an employee you trust in your management to make the best choices both for you and for the business to succeed. Ken Lay and other executives strongly encouraged Enron employees to invest inâ⬠¦show more contentâ⬠¦One Merrill Lynch analyst began to question the numbers and profits that were being produced by Enron and eventually he was fired. Enron invested a lot of money with Merrill Lynch and they didnââ¬â¢t want Enron to stop investing so Merrill Lynch got rid of the employee who question Enron, when in reality they should have listened to him. Merrill Lynchââ¬â¢s decision not to listen to him showed other employees that they better keep quiet with their opinions or their jobs would be on the line. If they listened to him they might have lost the deal with Enron, but in the end they lost it anyway and lost millions along with it. Merrill Lynchââ¬â¢s main focus should have been their employees and their investors, not solely Enron. They should have stuck to their code of conduct and followed their values. 3- Manipulated earnings. Enron executives and accountants cooked the books and lied about the financial state of the company. They manipulated the earnings and booked revenue that never came in. This was encouraged by Ken Lay as long as the company was making money. Once word got out that they were disclosing this information, their stock plummeted from $90 to $0.26 causing the corporation to file for bankruptcy. This deception on behalf of the executives and others in the organization who hid this vastly affected anyone who had stock in Enron as well as stock in other energy corporations. TheShow MoreRelatedCorporate Fraud, Greed, Corruption, And Ethics1598 Words à |à 7 Pages Introduction Corporate fraud, greed, corruption, what company comes to mind when you hear those words? Enron! In this paper we will take a look into the corporate facts and history as well as, stakeholder relationships, organizational trust issues, ethical leadership and ethical culture at Enron. As well as where improvements could have been made to improve organizational trust and ethical culture before Enronââ¬â¢s collapse. II. Corporate Facts and History According to the Texas State HistoricalRead MoreEnrons Ethical Dilemma1118 Words à |à 4 Pagesï » ¿Enrons Ethical Dilemma: Ethical and moral issues have received substantial focus in the modern society because of the recent cases in which huge corporations with big profits and earnings have faced bankruptcy. Enron is an example of corporations that have faced bankruptcy in the recent past because of the numerous problems it had with federal and state governments for manipulation of financial statements. While these problems are not only attributed to organizational issues, accounting firmsRead MoreEnron Accounting Scandal1706 Words à |à 7 PagesThe Enron Accounting Scandal of 2001 There are many accounting scandals that have occurred throughout United States History. Many scandals occur even without outsiders knowing anything that had occurred. Companies try their best to keep many of the accounting scandals quiet. Everyday, there are political and business fraud happening, and most of it goes unnoticed. No company wants to admit that there was a problem or that people within the company are not trust worthy. However, when executivesRead MoreEnron Impact The Human Behavior Of Those Who Were Employed By The Company1068 Words à |à 5 Pages1. How did the structure of Enron impact the human behavior of those who were employed by the company? The organizational structure of Enron was a calculated one with a clique that was thought as being the ââ¬Å"smartestâ⬠guiding the rest of the workers. It included Kenneth Lay: Chairman, and Chief executive officer, Jeffrey Skilling: President, Chief operating officer, and CEO (Februaryââ¬âAugust 2001), and Andrew Fastow: Chief financial officer. With the leaders known to be wise and smart, the workersRead MoreEnron : The Collapse Of Enron1644 Words à |à 7 PagesEnron was once one of the world s leading energy companies by reshaping the way natural gas and electricity were bought and sold. They filed the largest corporate bankruptcy in American history in 2001. Enron Corporation was an energy company running out of Texas that was started when two companies, Houston Natural Gas and InterNorth, merged together in 1985. By 1992, Enron became the largest seller of natural gas in North America and began to offer other services like wholesaler trading and riskRead MoreTakin g a Look at the Enron Scandal1270 Words à |à 5 Pagesreal cash flow had not come to the company yet. Moreover, cause when Enron come to the long term contract, they would assumed that there were long term declines in spot prices (Page 6, journal of economics), there would be the risk of loss if there were the increase in the price of gas in the future and it does not recognize in the financial statement; therefore, to make the income statement made more sense in economics term, Enron had created an accounting structure that help the company to stableRead MoreAnalyze the ethical violations of the company you researched. Iââ¬â¢m trying to briefly analyze the1000 Words à |à 4 PagesAnalyze the ethical violations of the company you researched. Iââ¬â¢m trying to briefly analyze the ethical violation that happened more than a decade ago with company called Enron. It was first established as an interstate pipeline company. In the following 2 decades, Enron grew with high rates and soon became one of the biggest energy traders in the world. Enron won many titles for the short period of time being a leader in electricity, natural gas and communications. Now, letââ¬â¢s switch to negativeRead MoreThe Rise of Enron Essay examples1632 Words à |à 7 Pagesof this decade ethical scandals erupted though corporate America. Corporate Leaders from major companies such as Enron were caught up in scandalââ¬â¢s ranging from fraud, conspiracy, grand larceny to obstruction of justiceâ⬠(Cross, 2011, p. 76). At the time, the Enron scandal was considered to be one of the most notorious and compelling business ethics cases in modern generations. Itââ¬â¢s was a textbook version of what can go wrong in an organization that lacks a true culture of ethical standards. InvestorsRead MoreArthur Andersens Troubles1239 Words à |à 5 PagesArthur Andersenââ¬â¢s Troubles 1. Arthur Anderson (AA) should have been able to help prevent to some extent the Enron disaster, however, they either missed or ignored Enronââ¬â¢s manipulations allowing the fraud to continue as long as it did. AA contributed to the disaster by approving the structure of many Special Purpose Entities (SPE), which Enron used for off-balance sheet financing. The SPEs did not meet the requirements of an independent company and should have been consolidated with Enronââ¬â¢sRead MoreEssay about The Downfall of Enron1734 Words à |à 7 PagesEthical behavior, in a general sense, is a definition of moral behavior in regards to lawfulness, societal standards, and things of that nature. In the business world, ethics commonly refer to acceptable and unacceptable business practices within the workplace, and all other related environments. The acceptance of colleges regardless of ethnicity, gender, and beliefs, as well as truthfulness and honesty in relation to finances within the com pany are examples of ideal ethical business conducts. Unethical
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment