Taking a Look at the Enron Scandal - 545 Words

Ethics is something that is very essential to have especially in the business world. They are the unwritten laws or rules well-defined by human nature; ethics is something people encounter as a child learning the difference between right and wrong. â€Å"Just how character matters in people, it matters in organization.† Justin Schultz, a cooperate Psychologist in Denver. For most organizations, values statements are simply rhetoric that sits on a fancy plaque on the wall. The real values are seen in the halls, not on the walls. What happens when an unethical behavior is committed? What happens when it is committed by a large cooperation, large enough to hurt the economy? Most people may claim they have integrity but when asked the definition they have their own meaning to the word, what has found that the internal definition each person has is unique. Financial reporting is the latest area hit with the ethical bug. On November 8, 2001, people were shocked when one of the hottest companies of the booming nineties, Enron, pulled out a huge scam which affected the thousands of people. Enron scandal tells a story of greed, over confidence and self-delusion. The business failed but the management cheated and kicked the problems down the road. They inflated its income figures by $586 million over a four-year period. Less than a month later, Enron filed for bankruptcy. Enron had started as a gas pipeline company, it soon expanded into the world’s largest and dominant corporationShow MoreRelatedTaking a Look at the Enron Scandal1270 Words   |  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 MoreUnethical Behaviors And Situations Of Conflict Within The Workplace1572 Words   |  7 Pagescritically about a particular dilemma and whether or not it is ethically wrong takes time and critical thinking. The accountants of Enron could have avoided this situation by stepping in and explaining to their superiors the cost of the long-term consequences compared to the short-term benefits was not worth what they were putting out on the line. By analyzing the Enron scandal there will be a greater ability to know information that wi ll help pin point any unethical behavior that an accountants may experienceRead MoreThe Enron Scandal Of A Company1193 Words   |  5 Pagesjust because a company cheated and stole your money. This is what the Enron scandal did to thousands of people. It could have been stopped if more forensic accountants in the world are checking on the companies. This way they don’t lie about their stock value. Forensic accountants are in charge of checking business financial records to make sure that they are true. When companies falsify their records it makes the company look better, which makes people want to buy shares of their stock. When moreRead MoreEssay about Phar Mor Inc Case Study1184 Words   |  5 PagesSean Russi The Case of Phar-Mor Inc ACCT-525 October 31, 2012 Case Summary The case of Phar-Mor Inc was one of the biggest pre-Enron frauds that have been uncovered. Phar-Mor Inc established in 1982 Phar-Mor was a small little known discount drugstore. Phar-Mor became well known for offering medications at a 25-40% discount rate compared to your normal pharmacy store prices. Phar-Mor’s first six years of existence seemingly wereRead MoreEnron And The Enron Scandal1387 Words   |  6 PagesEnron, The Shadiest Guys In the Room When you ask young people about the Enron scandal today, most of them have not even heard of it. The fact of the matter is, it is very relevant to young professionals today. Enron is the most recent story of classic Wall Street greed and fraud. However it is still argued today by different stakeholders who are is responsible. This essay will take the viewpoint from multiple stakeholders to use the Enron Scandal as an example to further explain American corporateRead MoreThe Enron : Organizational Renewal Theory And Situational Crisis1023 Words   |  5 Pagesthe Enron collapse as we mentioned earlier in the paper. If the organization had a clear-thought out plan, then the company could have managed to save itself from bankruptcy and damaging lives. After reviewing the aftermath of this crisis from several articles it is evident that Enron handle this poorly from start to finish. In this section, we will be focusing on two crisis communication theories as they related to the event. It is actually difficult to properly gauge the theories, as Enron didRead MoreEnron750 Words   |  3 PagesEnron: Ethics and Auditing Gone Wrong Enron was once a promising company headed toward greatness but all of this was just for show and thus not long enough; it was discovered that one of the world’s most admired companies was just faking all their records taking down a lot of investors of their company to bankruptcy as well as their employees. The Enron scandal has paved the way not only to America’s consciousness on risks involved on how corporations work, but how stakeholders can be victimizedRead More Energy Alternatives: Oil Essay1081 Words   |  5 Pagesthose numbers are rising. (Oil Demand) As demands increase and the supplies of oil continue a rapid depletion, large political powers in the US struggle to keep their heads afloat. Many conspiracy theories have dabbled in the pool of scandal within the Whitehouse’s knowledge of September 11 before it happened, and George W. Bush’s master plan to wage a â€Å"War on Terror†, with a backdrop of draining the last of the oil supplies from the mid-East. Every conspiracy theory needs to be takenRead MoreThe Rise and Fall of Energy Giant, Enron Essay1540 Words   |  7 PagesThe Rise and fall of energy giant ‘ENRON’ Introduction: The main aim of this essay is to analyse business ethics in the context of the Enron scandal. Enron scandal became notorious for violating ethical standards. There are several business motives involved in the rise and fall of Enron. In today’s world, adopting ethical standards is a must for a company to protect shareholder’s interest. Even though the rules of playing business are obvious, still several companies adopt short cut mechanismsRead MoreEnron Was A Successful Multi Billion Dollar Company1555 Words   |  7 PagesEnron was a company that operated one of the largest natural gas transmissions networks in North America. At the top of its game, Enron was a successful multi-billion dollar company that marketed electricity and natural gas. Enron also provided financial and risk management services to consumers around the globe. Because of its success, Enron left many people astonished when it declared bankruptcy in December 2001. Twenty thousand employees were left without jobs and most had lost their entire