Enron College Essays Samples For Students

Introduction

The financial statements of organization are the measure of its performance. The financial health of an organization can be judged from its financial statements. That is the reason why the statements should represent a true and fair view of its position. Often people at key positions are encouraged to falsify accounts to meet short term needs such higher earnings per share or profit after tax. Sometimes people engage in such activities to conceal the actual position of the organization and make it look profitable in the eyes of investors. It is not just big organizations but the small ones are ...

Based on the documentary film Enron, it is apparent that Kenneth Lay was motivated by a genuine goodwill to prosper commercially when he merged two energy companies in Texas to form Enron. After its incorporation, Enron would later ride along the economic convenience created by deregulation of natural gas trade. Deregulation of natural gas market facilitated generation of vast revenues through sales at high prices. As the company’s revenue increased exponentially, human ingenuity infiltrated into Enron’s executive body. Consequently, executive officers and financial professionals within the firm adopted accounting principles that gave birth to what became an overt ...

Introduction

The 2001 Enron Scandal was one of the first corporate persecutions of the New Economy. The fall of the company marked one of the biggest cases of bankruptcies and pointed at the gaping hole in America’s corporate morality and responsibility. The constant pursuit of profits and indiscriminate bid for rising revenues, while trying to downplay all signs of dangers of such a path, led to the collapse of the company. As long as the company value was increasing and stock prices rising thus benefiting the investors, even the board of directors did not bother to take an in depth ...

Ethics and Corporate Social Responsibility should work in harmony in a corporate world. These are key traits defined for maintaining good business morals, hiring employees with personal ethical values, and behave ethically and sensitively towards the society, economy and environment as a whole. We will discuss four theories in the context of Bernie Madoff and Enron two of the top financial scandals in the history of America.
Profit Maximization Theory - This ethical theory requires decision makers to maximize the profits of their business within the limits of the law. According to the theory the role of government and lawmaking ...

Background of the case

Enron was one of the largest companies in America dealing mainly with the distribution of power but also diversifying into numerous other interests. Enron, despite its phenomenal success occasion by the unprecedented growth of the subsidiaries it acquired, became a name synonymous with ‘fraud’ and ‘ethical disaster’.
The genesis of the Enron ethical menace began when federal regulators permitted Enron to employ an accounting method known as “mark to market” which allows recording of price of a security on a daily basis in calculation of profits and losses. Enron was therefore able to count earning it had not made and might ...

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The biggest scandal of the early 21 th century was the case of "Enron". The financial collapse of U.S. energy giant is also not without participation of offshore companies. The corporation came into being in 1985 through the merger of two gas companies in Nebraska and Texas. It was the "Enron" became the first owner of the gas pipeline network that stretches across the country.
In the 1990s the company has engaged in trade, not only gas but also electricity. Corporation has entered the market of securities, which enabled ...

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Abstract

At the heart of the problem of social responsibility are the values ​​of the individual: the general belief of the person as to «what is bad and what is good." The most important is to consider the maximization of profit, efficiency, and compliance with laws and less valuable, such as altruism. And if the actions of the organization respond to this system of values, they see it as socially responsible. To determine whether a person considers good behavior should have a basic understanding of ethics, which deals with the principles governing right and wrong ...

Philosophy 334 Summer Essays

Business cultures exists with a primary goal of profit. This compromises the ethical conduct of a business since all other things, including morals and ethics, often take the back seat in order to make way for maximization of profits.
We will return to this case as a comparison later, as it has bearing on the similar case of XYZ Hose Co. in which a design for hoses to distribute anhydrous ammonia to fertilize farmer’s fields. These cases represent a micro and macro view of liability in which a forprofit company caused problems in the life of citizens. Legally, there are three classifications for ...

A code of ethics is important for an individual’s own life, but it is extremely important for a company to have in order for them not to be led down a road of immoral business practices. The example used as the classic case of unethical and immoral conduct in the business word is the case of Enron, which at the turn of the century was one of the most blatant examples of business impropriety. The issue of Enron and other businesses like it are ethical questions. Enron's first mistake was not that of breaking any laws, but in choosing to ...

Slavery in Cocoa Farms in Ivory Coast, 2001

Systemic, corporate and individual ethical issues
The case raises a number of ethical issues that resonate around the systems, the corporates and the individuals as stakeholders in the blooming cocoa industry. It is noteworthy that Ivory Coast is the world’s leading importer of cocoa hence the ethical issues have assumed an international character. The stakeholders affected by these ethical issues include the Ivorian government and the cocoa farmers, American and European chocolate manufacturers and the ordinary chocolate consumer who does not know the origin of the products.
The systemic ethical issues resonate around the Ivory Coast economy ...

Introduction

It is a requirement for all the financial institutions to be accountable for their financial activities and present their financial statements in such a way that they are not fraud. This means that they have the mandate to provide financial information that is trustworthy and reflect the mission of the entire institution or company. However, this has always not been the case where in some cases various financial corporations and companies try to present financial documents that do not reflect their shareholders’ interest. Because of this, the stakeholders who have interest in them are only left frustrated hence, lose their interests ...

The Enron Corporation was declared insolvent in the year 2002 while Arthur Andersen failed a year later. Various scholars have scrutinized these incidents with the intention of identifying its cause (Cruver, 2003). A strong observation highlights that the failure and the possible recap relates to the decisions adopted by the teams. Particularly, reliable sources account that insensitivity of ethical obligation in the decisions adopted by the teams led to the incidents (Lublin, 2002).
The two teams overlooked essential ethical principles when making decisions regarding their undertakings. Initially, most decisions adopted by the two companies were insensitive to the idea of ...

HONEST AND INDEPENDENT AUDITORS

The first decade of the 21st century was marred with financial scandals. These scandals led to a worldwide financial crisis and the collapse of some economies. The events brought into focus the importance of the external auditors and their independence. After all, it is upon auditors’ recommendations that financial decisions are made. As can be seen in recent economic events, the recommendations of the external auditors would have profound impact not only on investors or stockholders but also on entire economies. The importance of auditor independence cannot be underestimated. Unfortunately, it is being brought to light precisely because of its ...

Works Cited 9

Preface
Enron Corporation was American based energy, commodity and service organization that was established in 1985 by Kenneth Lay in Omaha. The company was formed by merging Intermorth organization and Houston Natural Gas. Over a period of time after its formation company shifted its focus from energy trader to energy bank by giving guaranteed quantities at fixed prices for long-term. The company was bankrupted on 2nd December 2001. Before its bankruptcy the company was one of the major operators in energy sector. It owned energy plants, gas distributors, water organizations and other subsidiaries to provide various services to customers ...

Abstract

The Enron collapsed will probably remain one of the most shocking and extensively studied corporate failures in the history of the business world. Enron had set an ambitious target of becoming the world’s largest company and it had held the capacity to fulfill this objective. However, its sudden collapse revealed major lapses in management and corporate governance, especially in the areas of accounting, communications, business ethics, leadership, and organizational structure. This paper aims to evaluate the leadership of the corporation a year before its collapse and recommend a strategy to prevent the eminent disaster.
1 Enron – Overview
In ...

The paper highlights the scandal of Enron and three prominent issues of Enron which led to the collapse of Enron. Enron was energy, commodities, and services company based in Houston, America. After reaching an incredible height of success, Enron Corporation collapsed because of bankruptcy. The policies implemented by Enron backfired and proved to be fatal for the company,as the company crumbled down. The deregulation of Enron was one of the reasons for its doomed fate since Enron was involved in maintaining agency’s earnings reports for investors. Enron did the reporting in a vague manner, hence hiding the ...

Enron did not focus on actually supplying oil and gas, like a traditional company would. Instead, Enron oriented their efforts towards buying futures (investments predicting the future price of a commodity) in oil. The company also bought electricity from generators and sold it to consumers. One of the bold moves that the Company carried out was the signing of marketing agreement for a year, which was the first in the industry, with Calpine Corporation. According to the agreement, the natural gas daily prices would be linked with the electricity prices. Another example would be the signing of contract for ...

Introduction

Corporate executives are required to maximize shareholder revenue while avoiding agent-principal conflicts, enhancing the reputation of the companies, and conforming to the regulatory standards. The situation in Enron indicates the corporate irresponsibility and managerial negligence that resulted in investor outrage and multiple lawsuits. The shareholders demanded legislation reforms, managerial accountability, and corporate power. The scandal in Enron encircled unethical and illegal activities punishable by law. This essay attempts to evaluate the virtue ethics that apply to the case of Enron.

Body

When it comes to the concept of virtue ethics, the postulates shift from individual, agent-centered, and action-oriented. The theory ...

Upon viewing Enron: The Smartest Guys in the Room, one is left with an overpowering feeling that business majors and law students in America’s colleges and universities should be compelled to view this shocking exposé. Its recounting of the greatest corporate scandal in American history is a cautionary tale of staggering proportions. The story which ends in once-powerful űber executives being led off in handcuffs identifies a number of important themes, including deregulation vs. government oversight, and irresponsible speculation vs. transparency and accountability.
In spite of the complexities involved in Enron’s epic fall, its story boils down to a ...

Corporate social responsibility has in the previous years worked its path into many corporate agendas and policy debates. Its definition has also undergone multiple modifications and is currently evolving along with the societal expectations (Crowther & Aras, 2008). Despite there being no single definition that is globally accepted, several events can be singled out as not fitting the framework of corporate social responsibility. The surprising collapse of Enron Corporation compromised the safety of over 20,000 employees’ pension funds (Silverstein, 2013). The corporation operated as if it was an isolated entity that had no links with the wider society. Due ...

How a Group of Students Sold Enron a year Before the Collapse

The article talks about how some students from Cornell University analyze Enron's stock using both technical and fundamental analysis. At the time, 1998, Enron was a high performing company, however, after taking on a project on financial analysis as part of their course work the students met inconsistencies in the annual report. These discrepancies suggested that something was amiss, and fraud was the likely reason. Cornell University has a live investment fund known as Cayuga fund with $650,000. The funds purchased Enron shares in December 1998 at $27 per share and more in October 1999. This totaled 720 ...

Introduction

The realization of malicious and scandalous activities going on in any institution is troubling. More troubling is the fact that, upon realization of financial misconduct, investors feels humiliated, cheated among other mixed reactions. The case of Enron and Bernard Madoff is one such case in which investors were deprived of a staggering $ 65 billion. However, the public uproar that was experienced at the time, most of whom never even held shares with the culprit institutions, is not because these institutions had done a grievous crime, but rather that on looking at such an institution, there seems to be a clear reflection of ...

According to the film, "Enron: the Smartest Guys in the Room," weaknesses in the capitalistic system are exhibited such as the cultures that have been created that involves practices of fraud and greed. These practices are fostered by the fact that the economic system is vulnerable to abuse by anyone who could manipulate the stockholders as well as the public. For instance, the management of Enron was able to augment their share price by convincing the public that it was making sufficient money without providing any prove. Another weakness is the ignorance of the regulators to ensure that the ...

Accounting is certainly the backbone of a company therefore it is extremely crucial to maintain a transparent and an accurate set of accounting records. Whenever discrepancies arise in the accounting records of a company, the stakeholders associated with it is responsible. A prominent example of misappropriation of internal and external audit is the case of Enron, which seemed to be a very successful company of its times. However, before the company went bankrupt, its top level management confessed that they have indeed manipulated the financial statements to inflate their profits and deflate their losses (Enron Annual Report, 2000).

Enron was a very successful company ...

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Introduction

The failure of Enron due to unethical practices had served as a lesson for the entire world. Firstly, it was first of its kind and secondly, there was a chain reaction of wrong actions to cover up smaller misdoings. Every field of study tried to find out the real reasons of failure of Enron as a corporate. Some claimed it to be financial failure, some as leadership failure, some as cultural failure and some as corporate governance failure. This case is one of the basics to understand corporate social responsibility and implications of failure to ...

The aim of the project is the implementation of ethical influence concepts of a practical example. For this purpose, Enron has been discussed in the current assignment. The company faced bankruptcy in 2001 because of the unethical behavior and negative politics of its leadership. The top leadership of the company abused its power and manipulated the information.

Why did it happen?

Enron is a big example of unethical utilization of power, misbehaviors, moral failure, and unethical executive practices. All these mistakes of Enron led the company towards bankruptcy. There are five ways; power comes from that include coercive power, reward power, legitimate power, ...

Business Ethics

Abstract
Modern day economy and economical market are not easy to survive in. Corporations and monopolists absorb small companies and there is no ethics involved. Ethics takes place in business communication, when it is important to get a contract signed or deal made. Other than that it is hardly common or considered as necessary. One will not be able to succeed unless he accepts it as due and undertakes actions that are right for his business. Today competitive market makes you cross the line of law and overstep the bounds of decency. Ethics, in terms of morality and social ...

The biggest scandal of the early 21 th century was that of "Enron". The financial collapse of US energy giant happened with the participation of offshore companies. In the 90s the company began to trade, not only gas but also electricity. The Corporation has entered the stock market, which allowed it to have room for financial maneuvering. "Enron" was the largest trader in the electricity market in 2001 and reached TOP-10 in the "Fortune 500" list. Naturally, there were close links with major policies - it is the "Enron" has become a sponsor of the longwall-George W. Bush in ...

Enron Corporation was an American company in the energy sector. The company was based in Houston Texas, before it was declared bankrupt in 2001. Enron had employed approximately 20000 employees before its bankruptcy. Enron was among the leading companies in natural gas, electricity, and communications. In 2000, the company had claimed revenues of approximately $101 billion. Enron had risen to top ranks as the most innovative company for six years. It was later revealed that the top performance of the company was as a result of systemic, institutionalized and creatively planned accounting fraud and corruption. Following these the company was ...

The 1920s was known as the Roaring Twenties in the American history because of changes in the social norms, and the country experienced a strong economic boom (Kennedy: 2). During the time of widespread economic gain, the application of fair value in accounting and lack of regulation in security markets left the investors at great risk. That is the reported figures of stock prices had no information justifying their values. Similarly, financial institutions such as banks were lending recklessly with no guarantees to their clients. Consequently, the gap between the rich and the poor in America increased steadily (pbs.org). ...

In the case study, it is pointed out that all through the late 1990s, Enron Corporation was nearly universally regarded as being among the country’s most innovative corporations (Li 37). The company went on building power plants and operating gas lines; however, it turned out to be well known for its exceptional trading business. Apart from buying, as well as selling, electricity and gas futures, it engaged in the creation of entirely fresh markets for such eccentric ‘products’ “as broadcast time for advertisers, weather futures, and internet bandwidth” (Li 37).
Enron Corporation was established in 1985, and being ...

Section 1: Introduction and situational analysis

Deregulation provided an opportunity for Enron to be a matchmaker in the power industry, playing the role of bringing sellers and buyers together. The Company made much profit from those exchanges with revenues generation from the differences between the selling and buying prices. In addition, the deregulation allowed the company to become creative and for the first time, the company that was required to operate along the lines that embraced innovation and tested limits (Bartlett & Glinska, 2001). Enron's contracts over time became more diverse as well as significantly complex. As its services and products evolved, the company's culture also evolved. ...

Executive Summary

Organizational culture is intended to cover the various ways in which authority is organized and the controlling and rewarding of staff.

Focus on organizational architecture in this analysis coincides with the models of the corporate structure.

This approach touches on vital components of the organizational architecture and evaluates how the conscious actions of Arthur Andersen managers affected the organization.
Unless reinforced with the formal and informal organizational architecture, the cultural element may be less effective in achieving an organization’s business goals.
Often top executives are unwilling or unable to employ value building organizational architectures. These executives are moved elsewhere, or in extreme cases fired, to uphold the values of the organization.

Arthur Andersen firm remains inefficient over time and eventually goes out of business due to bankruptcy.

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Abstract

The paper details the implication of violation of ethical decision making and professionalism citing the example of Enron Scandal. Enron, which was once rated as one of the most innovative companies by Fortune Magainze, is now largely known for the accounting scandal that eroded $78 billion from the stock market and affected thousands of company’s employees, just because of malfeasance activities by the company’s executives, who hide billion dollar losses and debt owned by the company to inflate the stock price and meet Wall Street’s expectations while in reality it was in massive losses.

About the paper

Anyone who ...

Capstone Project

What second topic have you selected for this assignment? Explain.
I have selected corporate or white collar crimes for the second topic. The last few years witnessed the scandals in the global corporate scene among the U.S. and European companies and their counterparts in the other parts of the world. Corporate crimes are synonymous to “Corporate frauds,” “corporate breakdown,” “accounting scandals,” “corporate scandals,” among others, have been tagged to these corporate controversies (Ball, 2009). One of the best and most popular examples of corporate crimes is the case of Enron. This happened some years ago and such type ...

Introduction

All leaders have power. The one thing that delineates one leader from another is how power is used efficiently and effectively. This paper is about how Patagonia and Enron fare as companies and the leadership styles they employ in managing their organization.

Corporate Power and Leadership in Patagonia

Patagonia Inc. is a clothing company that "makes high-performance outdoor and sports apparel [and] employs [more than] 1,200 people" (HP and Patagonia: Two Similar, Yet Different, Leadership Styles, 2005) since the company started in 1973. It is known as one of the highly environmentally conscious businesses around the world. Yvon Chouinard, the founder and owner, believes in " ...

Enron’s Ethical Meltdown

The Enron Corporation, a Texas based company, became bankrupt in 2001(December) - after a series of auditing malpractices. Financial analysts estimate that Enron’s shareholders lost $ 11 billion, after the company’s collapse. Enron employed nontransparent auditing means to present financial statements that did not reflect the company’s finances to the shareholders. To a great extent, Enron’s collapse could be attributed to the top management’s unethical business practices.
Dessler (2011) warns that rewarding unethical behavior can backfire anytime, as it happened with Enron. To some extent, the management rewarded unethical behavior because the employer did not punish ...

Before its collapse in December 2001, Enron was ranked by Fortune as the 7th largest company in the United States and was viewed as one of the most innovative companies in the world. It initially started as a gas and utility company and grew quickly through innovative strategies to a leading trader in energy supply, steel, paper pulp and fiber optic bandwidth.

BACKGROUND

Enron’s rapid expansion required huge investment in assets which was mainly financed through debt. This debt was hidden by means of establishing special partnerships entities to effectively remove any negative effects to the company which may be evident ...

Charismatic leadership in relation to Weber’s theory is the perception of the sub-ordinates that a leader has an attractively inspired gift, which will change their lives extraordinary (Sendjaya, 2015). It is based on the characteristics of the leaders like passion, confidence, and high level ability to influence people. However, these abilities of the leaders sometimes contribute to dysfunctional attitudes, such as high level egoism and self-centralism (Van Wart, 2014). In other words, a leader can be positive charismatic leader or negative charismatic leader. The leader with positive charismatic leadership abilities is oriented to others, whereas the leader with ...

Abstract

The given case study discusses the rise and fall of Nortel Networks Corporation, which was one of the world’s largest telecommunication corporation. Nortel was a Canadian global organization that was at its peak in the early 2000s and apparently, it botched due to inefficient echelon management, inflated earnings and costs, dysfunctional directors’ board, as well as, illusion of constancy and stability. Although there were numerous possibilities that could have been adopted to prevent the fall and demise of the company; however, those roads were unfortunately not traveled. Nortel’s downfall began when it fails to live up to ...

Corporate ethics reform

A policy maker is someone who does an analysis on the policies created to govern various institutions such as a company on a small scale to country on a larger scale and which define the way it works. Without such policies, an institution becomes paralyzed and cannot function accordingly meeting the needs of the people. An institution without policies is doomed to destruction with time. A policy maker looks at such policies critically at different levels. He/she should be a critical thinker to clearly explain to what extent either positively or negatively would a policy implemented to what extent affect an institution. He/she should ...

Virtue Ethics

The essence of Virtue Ethics is based in its antiquity and the fact that almost all ancient civilizations having endorsed some form of this principle. This is one form of Ethics that can directly be applied to professional and managerial situations. The reason for this is the ‘character-based’ nature of Virtue Ethics, wherein one evaluates an action in terms of specific ethical goals. In a sense, Virtue Ethics answers questions for managers better as compared to the Teleological or Deontological Ethical thoughts that are more consequence or duty based respectively. This essay would proceed to describe Virtue Ethics and ...

Enron Corporation an American energy company was based in Houston, Texas before its decline in 2001. In the company, over twenty thousand employees were contracted in this organization. More particular, Civil Engineer were contracted in the field of Natural gas and other field operations, professionalism of these employees was in doubt that they led to bankruptcy of the whole company. The financial condition of the company was sustained through an institutionalized creatively planned financial fraud referred as the Enron Scandal. The corporation has since been a famous example of a willful corporate and corruption (Rapoport, 2004). In modern world, ...

The Milgram Experiments were basically a series of psychological experiments conducted by a psychologist professor from Yale University named Stanley Milgram; the purpose of the said series of experiments was to describe and measure the willingness of individuals to obey the orders of a person of authority and participate in a conspiracy or any scheme that conflict or go against their personal conscience. The reality is that these series of experiments had a long development period. It was first published and discussed in a 1963 edition of the Journal of Abnormal and Social Psychology. Milgram then went on to ...

In the year 2001, the Enron Corporation, an American energy company, went bankruptcy due to lack of proper and misguided information. This contributed to the firm failure and largest bankruptcy recognized in American history by the year 2002. This affected stock market and hence stakeholders and employees received limited returns.
The Stuart Mill’s theory of Utilitarianism explains the doctrine of having right actions if they are meant and useful and benefit the majority (Sellars, 2016). I believe Mill’s theory and philosophy. Regarding the Enron 2002 scandal, the theory relates to the actions taken by the management of ...

How to Reform Corporate Ethics in American Business Today

Corporate ethics is an important sphere of American business the regulation of which is of utter importance. It comprises the rules how the company operates: its management, control and responsibility for improper actions. The regulations of corporate governance and implementation of effective corporate ethical standards affect the situation of the economy of the state. Inefficient regulations may lead to huge problems, such as the Great Depression of 1933, ENRON case of 2007, global financial crisis of 2008, because of which the whole world economy was negatively affected, a lot of investors were defrauded, money stolen and etc. Scholars believed ...

The Enron bankruptcy scandal is a great example of the Mishkin’s concerns about asymmetric information problems. The key reason of the Enron scandal was that the management knew about huge financial losses of the company, but with help of various loopholes in accounting and poor financial reporting, top managers succeeded in hiding billions of dollars of financial losses and failed projects. This has created a situation characterized by the availability of asymmetric information, described by Frederic S. Mishkin in all the details. Enron was one of the largest and known audit companies in the world, and other top ...

The FASB123 and the FASB123R are basically similar policies or standards that account for a company’s stock options offering and compensation procedures. In technical terms, however, they are different because the latter is an updated and revised form of the former. Prior to the existence of the FASB123, company employees (from the Chief Executive Officer down to the rank and file employees for some publicly listed companies) receive equity-related compensations such as the ability and right to purchase stocks of the company for a discounted price (i.e. stock rights) and benefits aside from their basic salaries. The problem ...

Enron was the sixth world largest energy corporation. It claimed a lot of annual revenues and a sizeable workforce and became the biggest company in America representing a new business breed. The story of Enron’s company gives insight into the corrupt business, a culture that is faced by unethical practices.
When talking of Enron, one undoubtedly thinks of its ensuing scandal and collapse. The downfall of the company was as a result of several wrong decisions and accounting practices at almost every level of management. The film shows how top leaders such as the chairman and founder Kenneth ...

Business Ethics

The current article on ethics is ‘Enron, Ethics and Today's Corporate Values’ which is available on the Forbes website. The main points of the article are the segregation of duties, implementation of ethical rules in detail, balance between the desires of stakeholders and the ethical demands and the importance of ethical practice to enhance the strength of the business. (Silverstein, 2013)
The current article is very important for the understanding of the ethics because it is about the Enron’s ethical issues, which is the most important case study relevant to the ethical issues. In the bankruptcy of the ...

1.
The attitude that I find most offensive of the Enron's leaders is individual insubordination. The leaders encourage the employees to manipulate the financial transactions for their self-interests .Their individual insubordination put the company's fate at stake and as such the abused the shareholders' trust.
2.
The shadow that created a major role in Enron's collapse is irresponsibility. The leaders at the company were very irresponsible and as such they did not exercise the required oversight over the company's affairs. The leaders encouraged the employees to attain the financial goals by wrong means, and this ended up ...

Enron was a U.S based corporation operating in the energy industry. On top of that, it was also involved in the commodities and services business. It was one of the world’s largest companies in the energy sector, with a workforce of up to 20,000 workers. It also ranked the most innovative company in the U.S. The company gained recognition from the Fortune magazine for six consecutive years as the most innovative company in America. This continued until it was discovered that the company engaged in high level accounting fraud. By the end of 2001, the world had discovered that ...

1. What is ethics, and what does it mean to "put business and ethics together"? What would it mean for a company to do this well?
Ethics can be defined as behaving in a morally just way as one moves throughout their life and activities. Ethics and morality are closely related - one behaves according to a set of principles that dictates how the world and the people in it should work. In the realm of business, having proper business ethics often means putting other concerns ahead of merely seeking profit - in essence, there are concerns far from the ...

ETHICAL AND LEGAL ISSUES IN BUSINESS

Several accounting fraud cases have been reported recently, some involving big companies such as Worldcom and Enron. One thing that these cases have brought out is that there are many ethical and legal issues involved in financial and accounting reporting. It is a probable case that such accounting malpractices such as the ones recorded by Worldcom and Enron date as far back as when financial transactions started being recorded. Technology has become an integral part of many business operations, including financial and accounting monitoring. The integration of technology into this business operation has brought out such issues as security threats ...

In any organization, sometimes things take a new wrong turn and fall apart. The moment issues assume this direction that is when it is said that the culture of integrating professional ethics in the workplace or any other group with a leader has failed to be upheld. While under the management of Dell Company, this is the case that was experienced the time the group's leader decided to use his individualistic decision-making process rather than collectivism. Since he (the manager) failed to apply ethics in his decisions, the business failed just the same way he failed to address the ...

Introduction To Graduate Studies

Introduction To Graduate Studies

Part A

1a. Raj, R. (2009). A study in business ethics. Mumbai. Himalaya Publishing House.
Retrieved from http://site.ebrary.com

1b. Relationship between ethics & corporate excellence

1c. Inspite of Indian having an ancient culture and philosophy about worklife, we in India have not yet managed to develop our own management styles in consonance with our own cultural ethos and have been systematically importing management systems and styles from foreign countries.
Raj (2009) states:
Inspite of Indian having an ancient culture and philosophy about worklife, we in India have not yet managed to develop our own management styles in consonance with our own cultural ethos and ...

High-risk investments mean volatility associated with the returns on investments and stock prices change. Any investment transaction has a risk element. Moreover, the major proportion of the investment theory states that the potential profitability is inversely proportional to the risk level . At this, it is not important whether it goes about the passive investment, active stock transactions or new business projects. Risk allows earning much and provokes losing much because associated with potential losses even in the case of success. It is extremely important to understand quantitative and qualitative characteristics of risks, which affect the amount of the invested ...

Agency Problems

1.
The agency theory is a supposition that tries to develop an explanation for the relationship that exists between principals and agents in a business (Pfeffer and Salancik, 2003). Normally, agency theory involves developing solutions to the problems that might exist in agency relationships, such as problems between the principals and agents of the principals.
One aspect of agency theory is separation ownership. The relationship developed between the owners of the company (shareholders) and the agent (directors) in a company creates a separation in the ownership and control of the company. Major companies such as the ones listed in ...

There are six main categories of corporate failure causes: poor strategic decisions, overexpansion, dominance of CEOs, greed, pride and power, failure of internal controls, and ineffective board of directors (Hamilton and Micklethwait, 2006).
Business collapse can happen in cases where companies do not fully comprehend the relevant business drivers when they decide to expand to new lines of products and services, or meet the demands of additional geographic markets. These lead to poor strategic decisions because they fail to recognize the importance of risk management in their respective industries. They should be able to determine the overall impact ...

Q1) B

Q2) Prior to the 1980s, it would make sense that institutional investors would be a high priority for corporations, given that they technically contribute the most money to an organization’s success. However, given that institutional shareholders were relatively late in adopting the shareholder value culture, this perspective is flawed. While economic necessity might make organizations favor shareholder priorities, corporate culture (particularly in the 1980s) relied heavily on managers, who were thought to be in charge of corporations up to the 1970s, and whose fealty to government regulation made institutional shareholders wary of investing.
In the early ‘80s, however, ...