Enron scandal

How did the corporate culture at Enron contribute to its decline and bankruptcy? The culture at Enron was about obtaining monetary gain and this was supported and encouraged by executives. They promoted a culture of arrogance and made employees believe that they could take high risk with no consequences imposed. It was described in the documentary as the “survival of the fittest”. They put in place a peer evaluation that would cause staff to divide in order to survive. They referred the…

responsibility. A well-developed strategic plan will help protect a company against the pitfalls of unethical behavior and increase their level of social responsibility. In 2000, the unethical behaviors at Enron became public knowledge. A strategic plan with appropriate preventive measures could have saved Enron from the crumbling effects of CEO Jeffrey Skilling and others within the company. Social Responsibility In the struggle between ethical and unethical behaviors is the idea of social…

and Investor Protection Act' (in the Senate) and 'Corporate and Auditing Accountability and Responsibility Act' (in the House) and more commonly called Sarbanes–Oxley, Sarbox or SOX became a law on July 30, 2002 as a reaction to Enron and WorldCom-type accounting scandals. The most important part of this Act is that it provides a new nonprofit company responsible for the inspection and sanction of audit firms; this is "the Public Company Accounting Oversight Board”. SOX led to a greater…

virtues dictates an enterprise’s true value. Corporations like Enron, Volkswagen, and Mattel once ventures of firm principle and ethics created a rift in the business world. Consequently, these organizations and their lack facilitated the advancement of…

business ethics during her employment at Enron. It was these events that were leading factors to her Time Magazine “Persons of the Year” 2002 nomination. Sherron Watkins, made a household name early on at the turn of the century, was the Vice President of Enron Corporation who forewarned the then-CEO Kenneth Lay, in August 2001, of accounting irregularities within the company. Some biographical information regarding Ms. Watkins, this woman entered employment with Enron in late 1993, she was…

This paper provides prescriptive ethical judgement as to the actions made by Sherron Watkins, a CPA and “former VP of Enron(6)”, which caused the corporation to collapse. In summary, Watkins during her term of office became aware of “accounting irregularities” within the company’s accounting records. These irregularities were of such significant materiality, that if left alone, would result in immense public deception, fraud, and potential regulatory consequences. Seeming to have developed a…

Enron is considered to be one of the biggest audit failures of it’s time but who is really responsible for the downfall of this company? While watching the play and the documentary I felt like I was getting two different stories from two different perspectives. The main differences I noticed between the play and the documentary was how Jeffrey Skilling was portrayed and how effective the information was presented. Overall, I believe that I understood of the story of Enron more once I left the…

dominance in the market and on a political scale. Enron Corporation, during its prime, was no exception. Although Enron Corporation had grown to be one of the most innovative and powerful corporations in America, it fell hard due to lack of honesty in reporting finances. It fell because there was a lack of regulation, no one to watch the company’s top executives as they took advantage of the free market all to make a profit. Before the downfall of the Enron energy company, it was known as…

Since its origin, Enron sustained burdensome debt. At times the financial state of the company promised success. However, Enron never fully recovered from the debt with which it was created. The negligence of internal control within Enron eventually led to the company’s demise . Although it is important for companies to monitor every section of SOX, there have been several sections…

collapse of Enron • Arthur Andersen – Allowing the fees to cloud their professional judgement. To allow for questionable and complex accounting practices to continue via the SPE’s. Also, the destruction of Enron audit documents • Enron – Kenneth Lay/Jeffrey Skilling – The emphasis that was placed on a big profitable bottom line to increase the value of their company and their direct reward for such profits. They discounted the loyalty and the harm that it would have when the scandal began to…