453 words - 2 pages
Enron Video Assessment
The video shown in class Friday, the 27th of January, told of the scandal of a company named Enron that basically committed accounting fraud for over six years. This brazen crime placed the company at the top of fortune five hundered companies as America's most innovative company by claiming huge annual revenues averaging in excess of one hundered billion dollars. Since the company went bankrupt in Decemeber of 2001, it has become the epitomy of corporate fraud, and brought about a new federal law known as the Sarbanes-Oxley Act to try and prevent this from happening so easily.
Enron employed many people. Estimates were up to twenty
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What is Enron?
Until its decline into bankruptcy in 2001, Enron was the United States’ seventh-largest corporation. Enron grew from a natural gas pipeline company into a trading and marketing giant, moving first into the business of acting as a broker between energy suppliers and buyers, then expanding its role as a broker of non-energy transactions, and later adding a variety of diverse investments to its portfolio. Enron was a leading advocate of restructuring energy markets in the United States and the largest player in the energy trading business.
What led to Enron’s collapse?
The company’s most recent troubles can be traced to revelations in October 2001 of massive amounts
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Enron the Fallen
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 were degraded by no small terms. Enron was full of demoralized people throughout several departments with growing their personal finances their ultimate goal. They projected many years of financial
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The activities of the leadership of Enron and its Board of Directors is a virtual how to on how unethical decisions can and will eventually bring a company to the brink of collapse. The short term rewards of unethical activity can be quickly overcome by the destructive force of investigations and market swings. How greed and lack of oversight can cause the disruption of the livelihoods of employees not directly involved with the unethical behavior. We will examine the events leading up to the bankruptcy of Enron as well as the resulting legislation put into place because of the misdoings of Enron and other companies.
Before Enron became one of the top ten largest companies in the
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The Fall of Enron
This research paper talks about the Enron case – how it rose to the level of one of the top companies in the world and then fell from grace so that it eventually had to file for bankruptcy. The paper will discuss the financial and accounting manipulations that Enron resorted to and the analysts approach towards its stock prices and will discuss its eventual fate. The study will revolve around how Enron shed its ethics in an attempt to report ever increasing income and keep its stock prices high and how despite its short-lived surge of growth, it is still, even 11 years after a bankrupt, struggling to stand on its feet. The role of Enron’s top management
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The Enron and WorldCom Scandals
1. Which segment of its operations got Enron into difficulties?
The segment of its operations that got Enron into trouble was Kopper and Dodson creating a series of limited partnerships and limited companies through which to operate their interests, but Kopper had no outside investor at risk.
3. Did Enron’s directors understand how profits were being made in this segment? Why or why not?
I do not think Enron’s directors understood how profits were being made in this segment. They were unable to rely on the information they were receiving or on Enron’s company policies being followed. Management was out of control.
5. Ken Lay was the chair of
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The Greed and Unethical Behavior at Enron
March 13, 2012
The Smartest Guys in The Room (2005) Enron was one of the largest trading firms in the U.S. It was founded in 1985 by Ken Lay when he began his crusade to help liberate businessmen from government regulation. It remained one of the largest firms up until 2001, when all of their illegal activity was exposed and all of the finger pointing began, and was even voted to be the most innovative companies in 2000 by fortune 5 hundred magazine (First 20 min.). The scandal had broad reach, and included many politicians including WWW.Time.COM (2002) George Bush Sr. and Jr. as well as then Vice President Dick
1727 words - 7 pages
Widely known as the champion of the energy industry, Enron is suddenly faced with a corporate crisis in the form of a scandal. This scandal involves not only Enron’s accounting practices but also its corporate governance and culture (Lawrence & Weber, 2008). This report will recommend some potential strategies for Enron to move forward from the scandal. To do this, we must incorporate stakeholder theory, which “argues that corporations serve a broad public purpose; to create value for society” (Lawrence & Weber, 2014, p 6.). This means that Enron must take responsibility for the scandal it created and take actions to regain its stakeholders’ confidence. To accomplish this, we
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the early 2000’s. Before their downfall they caused damage financially and personally, which had effects nationwide.
Alfred Harrison was the vice chairperson of Alliance Capital, and the manager of Florida’s pension plan account (Lawyershop.com, 2003). He used a “V-method” approach to investing, which lead Alliance to the purchase of 4.9 million shares of Enron in late 2001. Frank Savage, a director of Alliance was another key member involved in the company’s unethical acts. Frank was also a member on Enrons’ board and many suspected that he pressured Alliance to purchase the shares even though the company was on the downfall. The actions of both these individuals caused
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I have selected the non-fiction book named ‘The Smartest Guys in the Room’ written by Bethany McLean and Peter Elkind. The book is based on the The Amazing rise and Scandalous fall of the Enron Corporation. Enron Corporation was an American energy, commodities and service company based in Houston, Texas. Before its bankruptcy in December 2, 2001, Enron employed more than 20,000 employees and was one of world’s major electricity, natural gas, communications and pulp and paper company with claimed revenues of nearly $111 Billion during the year 2000. In 1985 Kenneth Lay (the founder of Enron Corporation) merged the natural gas pipeline companies of Houston Natural gas and
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stakeholders within any organization, each individual stakeholder has their own agendas, and these agendas will overlap one another. These stakeholders will include the consumers, communities, employees, and its shareholders. An example of this situation would be Enron, who in 2006 were in a scheme whereas they had constructed several off-the-books partnerships. These partnerships were used to hide the massive debts of Enron, which in turn artificially inflated there stock prices (Trevino and Nelson, 2006). This was a shameless attempt to keep current stockholders happy and attract new shareholders. If the world outside Enron had known of this misconception, Enron would have been out of business
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. There is only a requirement that any decisions reached at by the examiners shall be based on evidence that is sufficient and relevant to support the facts, conclusions, opinions and/or recommendations related to the fraud examination. On the contrary, auditors’ rules for client acceptance provide that auditors’ findings can only be published upon clients’ authentication and approval. In both scenarios however, there is a general legal duty to observe ethical standards in carrying out the work.
Why did Enron fail?
Enron was one of the Multinational corporations that failed in the recent decades. The major cause of Enron’s failure was the lack of auditing ethical standards and most
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power that a manager uses to deny or administer punishment simply to exert and control people in the organization although depends largely on the organization and the scope of the manager’s power. Legitimate power, this kind of power is the authority normally vested in a manager to control the behavior of the employees, based on the values, beliefs and structures of the organization.
These three forms of power briefly discussed above played out itself in the case of Enron. Where Enron could have exerted influence or control for the overall interest of the organization, they started pursing personal interest by diverting into business transactions that was of unquestionable
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: Centre for Promoting Ideas, USA
Volume/Issue Number: Volume 2, Issue 10
Database Used: Proquest Central
Author is Arguing: The author is arguing that ethics need to be more important and come into play in the accounting industry.
Saying New: The author is saying that ethics need to be of a higher priority in accounting. He gives the example of the Enron and how they did not act ethically by stealing all of that money.
Draw On Previous Research From: He cites other sources in his work but he does not have a list of his works cited at the end so I am not sure where he got his previous work from.
Previous Research Covers: The author previously researched a good bit about
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This archive file of LDR 531 Week 2 Managerial Organization New Ver contains:
Enron Business Failure
Option 1: Examining a Business Failure
Research a business failure that occurred at a large organization such as Tyco International Ltd., Chrysler LLC, Daewoo Motor America, WorldCom, or Enron.
Write a paper of no more than 1,050 words, describing how specific organizational-behavior theories could have predicted or explained the company’s failure.
Compare and contrast how leadership, management, and organizational structures contributed to the failure.
Format your paper consistent with APA guidelines
Option 2: Small Business Examination Paper
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lobbying choice: the case of R & D. Australian journal of management, 15(2), 297-314.
Gwilliam, D., & Jackson, R. H. (2008, September). Fair value in financial reporting: Problems and pitfalls in practice: A case study analysis of the use of fair valuation at Enron. In Accounting Forum (Vol. 32, No. 3, pp. 240-259). Elsevier.
Gore, P., Taib, F. M., & Taylor, P. A. (2000). Accounting for goodwill: an examination of factors influencing management preferences. Accounting and Business Research, 30(3), 213-225.
Goodacre, A., & McGrath, J. (1997). AN EXPERIMENTAL STUDY OF ANALYSTS' REACTIONS TO CORPORATE R&D EXPENDITURE. The British Accounting Review, 29(2), 155-179
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involved. On top of jail time, unethical decisions in business can lead to fines for specific people and also firings of people involved. These are some serious consequences for employees of any business. One example of consequences that can come from unethical business decisions is the Enron case. Top-level executives of Enron were convicted of stealing money from the business and forging accounting records. This decision made by these employees led to a good amount of jail time for several of them and Enron fell completely apart. Michael Perino explains that the Enron situation led to strict accounting rules that businesses must now follow. These new rules will make it much harder for companies
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Andersen because of its renowned reputation it had built in past years (CFO, 2002). The company continues to provide the same consulting, tax, and auditing services to large corporations as they did in the past. Ernst & Young, Deloitte, KPMG, and PriceWaterhouseCoopers are known as “the Big 4 accounting firms. Arthur Andersen made the Big 5 list but was disbanded by the government in 2002 for Obstruction of Justice following the Enron scandal” (The New York Job Source, n.d., ¶ 1).
Evaluation of Arthur Andersen’s Planning Function
The management’s function in strategic planning identifies and pursues “the organization’s mission by aligning the organization’s internal capabilities with
951 words - 4 pages
became the largest filing at its time. Its CEO, Bernard Ebbers, was found totally guilty and sentenced to 25-year imprisonment regarding the crime of stock and accounting fraud. Before WorldCom, the world had seen several cases of famous, or infamous, financial and accounting frauds, including Enron, Tyco, Aldelphia, Global Crossing and HealthSouth. Such cases, we can say, were quite complicated to trace, but WorldCom used a simple recipe to cook the book, which will be illustrated below.
HOW DID WORLDCOM COOK ITS BOOKS?
To understand the fraud occurring at WorldCom, we should basically understand the difference between operating and capital expenditures first, and then we would move on to
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Good accounting gone bad
Principal of Accounting 1
1. Anatomy of a financial sheet
2. Financial statement errors
c. North Babylon Union Free School District
3. Sarbanes Oxley Act
4. Corporate Accountability
Accounting has been defined as "the language of business" because it is the basic tool for recording, reporting, and evaluating economic events and transactions that affect organizations. For the financial statements to be of value, it is imperative they are accurate and presented in conformity with accounting standards. As a result, it is eminent that the financial statements are accurate
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today’s world auditors are practicing fraudulent activities such as auditors are compromising important information for their personal and self interest to receive incentives from the directors to provide false report. They are not providing true and fair reports of their audit firms for whom they are employed in. For example in the Enron case, the company collapsed due to alignment of the directors and the auditor’s interest. Where they recorded or reported a loss of $618 million due to the auditors providing false and incorrect report to the shareholder. In other words the shareholders were unknown about the conspiracy which was incorporated by its directors and auditors. Most of the firms
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decisions regarding client’s financials is the same manager directly involved in the profitability of the client
Arthur Anderson was given the role of a consultant and an auditor for Enron which created a conflict of interest for the firms divisions; since consultancy is more profitable than audit.
o Supervision and Authorization of operations and transactions
Low level of supervision and monitoring for partners ethical decisions.
Carl Bass, head of professional standard in Arthur Andersen made some notes on Enron’s financials that were overlooked by the partners responsible of Enron’s Account.
- Dysfunctional behaviour of corporate managers:
o Management Issuing orders to dispose of
494 words - 2 pages
milk, mainstream dairy products such as cream sauces, yogurt, desserts, cheeses and fruit drinks. Parmalat has four main business divisions: Milk, Milk Derivate, Fruit drinks, Other Products (Parmalat, Home Page, 2012) .Parmalat scandal, sometimes called as “Europe’s Enron”, is one of biggest scandals happened between 2002 – 2003 (Bonnie Buchanana, 2005). Calisto Tanzi, CEO, diversified the business to include other subsidiaries, for example travel company of Parmatour, and football team acquisition called Parma (FELU, 2003). This needed a lot of funding which it became apparent that the idea was a failure in itself from the beginning because it made losses and led to its closure with a loss
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assumed that the company ran smoothly. As a result, it was far too easy for corporations to overstate the value of assets or understate liabilities causing the true value of a corporation to be undiscovered. Some unethical behavior on an individual level, would be insider trading, kickbacks fraud and, as seen far too many times, the manipulation of the financial markets.
The Enron Corporation was the perfect example of this unethical behavior and its discovery led to the implementation of Sarbanes-Oxley Act of 2002. The company used systematic and planned accounting fraud to misrepresent the corporation’s financial standing and, as a result, led to its shocking downfall. The company’s
518 words - 3 pages
business ethical dilemma, which statement best illustrates Gilligan approach suggested in her theory of “The Ethics of Care”?
Correct Answer: | care and responsibility to others |
All of the following are considered exceptions to the general rule that there is no duty to rescue except
Correct Answer: | Witnessing an accident – this creates a duty to step in and help the injured |
The Sarbanes Oxley Act was passed in response to:
I. concerns that investors received full and complete information about potential corporate fraud
II. a lack of investor confidence
III. corporate scandals beginning with Enron
2180 words - 9 pages
Sustainable Innovation as a Corporate Strategy
M. Rashid Khan and Mohammed Al-Ansari Intellectual Assets Management, Saudi Aramco, Dhahran 31311, Saudi Arabia. 1. Introduction Something amazing happened in the corporate world. The idea to innovate has captured our imagination. As an example, in 1996, Lucent Technologies’ award winning “Creativity Center” was industries state-of-the art that provided leadership, passion, outstanding marketing, training and communication. Similarly, Enron was the industry “darling” for its innovation program; Enron’s major intranet program “eThink” was recognized with awards for excellence in communication. Yet four years later Enron went bankrupt, the
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. Now we are a large international company with a sizable American business” (Ferrell). With a company that has operations all over the globe; a solid ethical leader is needed to ensure the company is operating properly. I believe that the size of Coca-Cola and its previous poor leadership are directly related to their constant ethical issues in the last decade. In the end given the size of Coca-Cola and the previous leaders that have made poor decisions, there is no doubt that this is why Coca-Cola has had the issues they have had.
2. A news analyst said that Coca-Cola could become the next Enron. Do you think this is possible and defend your answer?
I believe that it is a possibility
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executive deception, corruption, greed and non-disclosure has made headline news and has required government to mediate between regulatory bodies and corporate legal teams. It is no different internationally, with massive companies like Enron, WorldCom and Arthur Anderson displaying unacceptable capitalistic behaviour to such a large extent these companies have disappeared from the corporate landscape. Business in general, and industry sectors such as financial services, health, government and technology are no longer trusted fully and the sad truth is that business itself is to blame. Corporate executives – and specifically Sales Executives, in the quest to meet the annually increasing
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mushrooms; they slowly appeared, elevated up to certain degree, got involved in fraudulent activities, collected high revenues and varnished in the air making few people reliable for its loses. There are many great examples of promptly rich companies that raised its snowball empires over years and collapsed in a few days, like Enron, Lehman Brothers, WorldCom, HealthSouth and etc. These companies took advantage of deregulated markets and created complicated schemes involving upper management that helped them to achieve public look at their best and collect high revenues. When their empires collapsed, country went through depression that can be compared to the time of Great Depression. High
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on Southwest Airlines done by Jody Gittell in 2003 to provide evidence on this behaviour. Gittell’s case showed how the employees of the firm, from management to front-line workers, cared for each other and placed the interests of others within the same community above theirs. Nonetheless, it is only one case study against many scandals such as Enron, Worldcom and the 2008 Chinese Milk Scandal. However, Southwest Airlines differ from Enron et al. in that relationship with employees is one of their two main commitments. The other commitment is the relationship with customers. Probing further, I came to pass with a causality dilemma. Should we regard a firm a human community because it values
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questioned because of several financial scandals like Enron and AIG. These scandals led to the Sarbanes-Oxley Act (SOX) passed by Congress in 2002. This act would minimize unethical corporate conduct and diminish the probability of future scandals. Top management must attest to and be accountable for the precision of their financial information (Kimmel, Weygandt, & Kieso, 2011).
The interaction between the four basic financial statement documents makes up the seamless harmonizing of economic activities within a company. This information provides shareholders with a view of the company’s financial position, profits and losses over a certain period, origin and designation of monies incoming
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percent included business ethics which increased to thirty percent in 2008 (King et al., 2010). And after the Enron scandal and passing of Sarbanes-Oxley which called for an ethics code, more and more organizations started including ethics in their statements. In researching various organizations, it was interesting to see that several do not have visions statements or have combine their mission and vision statements and one, Transfirst, LLC., has a corporate culture statement in place of a vision statement.
Little research has been done on the relationship between mission statements and company performance however, organizational statements like mission
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standards. Criminal Acts from the CEO’s from Enron, WorldCom, Tyco, Aldelphia Communications and Computer Associates along with several other executives have led to imprisonment for them all for unethical decisions that were made (Kinicki, Kreitner, 2009). No one is immune to unethical decision making. Making an unethical decision can cost a corporation or organization profits. It is estimated that $600 billion a year is lost in United States Companies from criminal behavior and unethical decisions (Kinicki, Kreitner 2009). The more ethical a corporation is the better chance it has to hire the best employees. I do not think anyone wants to start out by saying; I
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scandals like at Enron or Tyco, which involved deceitful and highly dishonest accounting practices, the government passed Sarbanes-Oxley Act of 2002 (SOX), which required organizations and businesses to follow and maintain a satisfactory internal control of a certain standard. Later, the Public Company Accounting Oversight Board was established which works on creating certain standards for auditors and regulates their activities. According to Weygandt, Kimmel, & Kieso (2008), the motto at time of passing SOX was ‘Better get those controls under control’, which was one of the most significant and important laws passed in decades. The main effect on internal controls was obligating top
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investors from fraudulent accounting activities by corporations. With organizations like Enron, Tyco and WorldCom getting caught up in shady business practices that bankrupted many investors, (SOX) set up regulations to improve financial disclosures from corporations. Under the Sarbanes-Oxley Act the regulations that stand out are:
“1. Section 302: A mandate that requires senior management to certify the accuracy of the reported financial statement
2. Section 404: A requirement that management and auditors establish internal controls and reporting methods on the adequacy of those controls. Section 404 had very costly implications for publicly traded companies as it is expensive to
770 words - 4 pages
Legality and Ethicality of Corporate Governance
Corporate Governance is control mechanisms that keep management operating within the rules and regulations. Without corporate governance, management could start operating under their own guidelines which may or may not involve integrity, responsibility, or accountability. Publically traded companies are required to have some type of corporate governance in place since the scandals from Enron and WorldCom.
The case study that we are discussing is from United Thermostatic Controls. United has many different divisions and they are all decentralized according to their respected area. The southern division has been gradually decreasing in sales
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CFO today needs to be able to evaluate business through ethical perspectives to avoid and minimise ethical issues in Accounting, in order to remain competitive and survive in the industry especially since there are cases like Enron, which makes the public more critical about the issues.
The purpose of this report is to provide the CEO with a report that outlines the relevant ethical considerations, CFO responsibilities and give advice to the CEO. This paper will evaluate possible unethical action by the company using 4 component of ethical theory which consists of Consequences, Consistency, Care, Character & Culture in the
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emerging markets could slow GE
• Reluctancy to sell unattractive units (MBC Universal)
Why GE under Immelt has not
impressed the stock market?
CEO Discount and no CEO Brand
• Investors value simplicity
- Immelt has diversified the portfolio
• Stock Markets like charismatic leaders
• Immelt has not made its brand as GE CEO
• Legacy of Welch
Change of Core Values
• GE suffered from accounting scandals (Enron), 911
incident (Airline Industry), etc.
• From Comparative advantage, down-sizing, super MNC
to win-win growth, business ethics & responsibility
How could GE stock make a
comeback? Our Story.
• Enhance investor relations
– Simplify the business
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The third week we study the unethical behavior of Enron’s case. I wanted to discuss about the climate of trust. As Sissela Bok noted “When trust is destroyed, societies falter and collapse” and we saw this clearly when concerning Enron. How do we building a Climate of Trust in our business and personal relationships? Truly “Leadership is not just a person or position. It is a complex, practical and moral relationship based on trust, obligation, commitment, emotion, and shared vision of the good” spoken by Joanne Ciulla. I believe that leading by good and moral example is undoubtedly the most powerful way to building trust. Trust is something we do by modeling honest behavior which should
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steer a company to make decisions about what products or services they want to continue offering, or what services they may want to add.
There are also ethical decisions that must be considered. Take the example of Martha Stewart, who was imprisoned for using insider information to prevent large losses on stock she owned. Financial information may be reported incorrectly or falsified as in the case of Enron and WorldCom. The Sarbanes-Oxley act was created to help remove the threat of individuals with power from covering up financial information to make personal gains.
To conclude, it is important to consider all the key people involved when making financial decisions or reviewing financial
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need for establishing trust and gaining ethical knowledge by way of study and application. Also, major organizational failures, such as Enron, have ignited an interest within the field. Possible further research is recommended at the end of this review.
his article examines the literature regarding the topic of ethical leadership within organizations. The literature review was conducted by utilizing databases such as scholar.google.com, the Library of Congress database, Academic Search Complete, EBSCOhost Discovery, and OmniFile Full-Text Mega. Additional resources were secured at Barnes and Nobles bookstore. A list of keywords used during the search is ethical leadership, ethics
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securities analysts. It also defines the SEC’s authority to bar securities professionals from practice and defines conditions under which a person can be barred from practicing as a broker, advisor, or dealer.  The seventh title is Studies and Reports and it consists of five sections and requires the Comptroller General and the SEC to perform various studies and they also have to report their findings. Studies and reports include the effects of consolidation of public accounting firms, the role of credit rating agencies in the operation of securities markets, securities violations and enforcement actions, and whether investment banks assisted Enron, Global Crossing and others to
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Salky and Roseman (2005) reported that the chief financial officer of HealthSouth, Weston Smith, had a life changing event in August 2002. Smith had signed several fraudulent documents in the past, but since the Enron scandal and the SOX Act of 2002 he was frightened to sign the second quarter annual financial report, a form called 10-Q. (Taylor, 2005, p. 411). Under the SOX Act, white collar crime penalty came with a possible ten year imprisonment. Therefore, officers who willingly or recklessly certified false statements could face imprisonment. Smith should have followed his initial judgment in the first quarter to resign and not sign the form. However, Scrushy personally spoke
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stability of their careers (Matthews, 1998).
Tyco ADT human resources managers, especially during the split are task with handling the mass influx of uncertainty of who will be working with what company, job security and out placement or out sourcing of certain positions. They will also deal with the uncertainty of how those roles would change if moved to a different company of project than what they are currently working on. A final challenge that Tyco-ADT human resource managers have to overcome is government oversight. Due to Tyco’s involvement with the World Com/Enron scandal, they have had to not only rebrand themselves and ensure potential employees knew that are a reputable company to be
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Examining A Business Failure
June 25, 2011
Dr. Catherine Garcia
Examining a Business Failure
This paper is about the company Kodak that recently filed for the bankruptcy. Kodak, once a very profitable organization is on the verge of another failure, like Enron, Tyco, etc. This paper will cover how the incorrect management decision lead to its failure. It will compare and contrast leadership, management, and organizational structure that contributed to this failure.
History of Kodak and timeline
George Eastman started Kodak in 1878. In 1888 Eastman presented a first simple camera to the world. He made the complex and complicated process of photography easy and simple
1253 words - 6 pages
The Sarbanes-Oxley Act of 2002 (often shortened to SOX) is legislation enacted in response to the high-profile Enron and WorldCom financial scandals to protect shareholders and the general public from accounting errors and fraudulent practices in the enterprise. The act is administered by the Securities and Exchange Commission (SEC), which sets deadlines for compliance and publishes rules on requirements. Sarbanes-Oxley is not a set of business practices and does not specify how a business should store records; rather, it defines which records are to be stored and for how long (www.searchcio.techtarget.com).
The legislation not only affects the financial side of corporations, it also
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search and acquire the trademark rights to your brand before you launch it.
Competitive Influences: typically a company’s competitors’ activities may be the catalyst to a rebranding. Once a contender renders your whole useless or dated, a rebranding may assist you regain a grip in your market and provides you the facelift you wish to effectively retaliate.
Negative Publicity: keep in mind a corporation known as author|writer|author} Consulting? it absolutely was a part of a bigger company together with the house Arthur Andersen that was tied to the collapse of Enron. Author consulting was granted independence from its parent company in 2000, and on New Year’s Day 2001, the house was born
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their respective bosses of wrongdoings such as
mismanagement, law breaking, and fraud. In essence, these brave women refused to keep
their eyes and mouths closed.
Persons of the Year
Coleen Rowley (FBI); Sherron Watkins (Enron); and Cynthia Cooper (WorldCom)—
three career women—all worked for very high profile organizations and all were whistleblowers. Rowley, an FBI staff attorney, after keeping quiet about the agency’s
failure to take seriously a situation regarding French Moroccan Zacarias Moussaoui, the
so-called 19th terrorist involved in the destruction of the World Trade Centers in New
York, drafted a memo about the situation and gave copies to FBI Director Robert Mueller
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1 ORGANIZATIONAL BEHAVIOR in CHANGING tIMES
THIS INTRODUCTORY CHAPTER PROVIDES AN OVERVIEW OF THE ENVIRONMENT OF ORGANIZATIONS FOR THESE CHANGING TIMES. IT BEGINS BY PROVIDING AN OVERVIEW OF BEHAVIOR IN ORGANIZATIONS AND THE INTERDISCIPLINARY ORIGINS OF THAT BEHAVIOR. NEXT, IT DESCRIBES THE ORGANIZATIONAL CONTEXT AND PRESENTS THE SIX FOCUS ORGANIZATIONS (BRINKER INTERNATIONAL, ENRON, HARLEY-DAVIDSON, HEWLETT-PACKARD, PATAGONIA, AND THE AMERICAN HEART ASSOCIATION). THIRD, IT POINTS OUT THE CRITICAL ROLE OF CHANGE AND CHALLENGE, FOLLOWED BY A DISCUSSION OF HOW PEOPLE LEARN ABOUT ORGANIZATIONAL BEHAVIOR. THE CHAPTER