Enron

Yes, both parties should be held accountable. The board of directors who ought to really screen the administrators, helping toward the organization; rather was much the same as leaving everything to the management itself to do whatever they feel is right. None of the outside directors had general correspondences with the top management or with other representative outside of board or council gatherings and preceding April 2002, they were never met without anyone else's input to talk about matter…

The Sarbanes-Oxley Act of 2002 gave the PCAOB the authority to investigate and impose disciplinary sanctions against any individual or any registered public accounting firms that violate any of the accounting standard. These standard include those set by the PCAOB and the Security and Exchange Commission, professional standards that governs brokers, dealers and auditors of public companies. PCAOB Rules 5000-5113 outlines the PCAOB’s authority to conduct inquiries and investigations. PCAOB will…

After conducting a search for research gaps on literature related to my topic, I have concluded that in fact, there are unknowns about my topic. I did not find any existing literature about whether or not there is a close relationship between institutional ethical leadership and organizational longevity. Do leaders of organizations behave in an ethical way based on their own set of values and principles, or is their behavior shaped by an established organizational ethical culture? In practice,…

This undue imposition of corporate political interests onto individuals is a direct result of the FEC case and its improper definition of corruption. The corruption that manifests itself in today’s political arena stems from the increases in independent political expenditures by corporations with limited transparency that magnify the perception of a corrupt political system to citizens. Consequently, in today’s American political environment, perception is reality, because it has been found that…

without thinking that the investors, and other stakeholders rely on those financial statements and the opinion of the auditor on those financial statements. The Sarbanes-Oxley Act was created because of the multiple accounting scandals of WorldCom & Enron in July 30, 2002. Because of that the investors lose billions of dollars, this negatively impacted financial stock market. Fraudulent accounting transaction and activities of immense business give rise to SOX. SOX was created to end…

Consequences of White-Collar Crime White-collar crime is a widespread problem which have resulted in significant financial loss to victims. A few well-known white-collar crime case made headline to aware of the seriousness. They are Enron collapse in 2001, WorldCom financial fraud in 2002, Bernie Madoff Ponzi Scheme in 2008 and Leman Brothers scandal in 2008. These frauds all linked to large amount of money. According to Friedrichs (2009), the financial damage result from white-collar crime in…

magnitude of the corporate scandal is huge. In the past 15 years, many directors have breached their fiduciary and legal duty that caused many people loses their money. For instance, the amount of money that lost by the shareholders and stakeholders in Enron Scandal, Lehman Brother Scandal, WorldCom Scandal, Tyco Scandal, Satyam Scandal, and Bernie Madoff Scandal are more than $200 billion. The company can sue the company's director if they breach fiduciary and legal duty. A company's director…

lot of interesting information that I didn’t know. The Ethical Dilemma that I noticed in the movie Enron: The Smartest Guys in the Room, occurred with 46 minutes left in the movie. It was at this point that Enron, had many new energy deregulation laws in California, they found a way to spike energy prices for the state of California in order to increase profits for the company. The traders at Enron would export energy from their power plants in California to other states. This would leave very…

transactions in Korea and improper accounting methodologies elsewhere. In April 2001, founders Jo Lernout and Pol Hauspie, as well as former CEO Gaston Bastiaens, were arrested in what is considered one of the largest corporate scandals in history prior to Enron. Lernout & Hauspie finally went bankrupt on 25 October 2001 after having struggled for a…

that this behavior is routine and normal (Little, n.d., p. 9). Knottnerus et al. (2006) in their article, “Exposing Enron: Media representations of ritualized deviance in corporate culture”, discussed the role of rituals in the development of normalization of deviance at Enron (p.177). The authors provide an unique perspective and explanation as to the cause of the collapse of Enron that is rarely seen in the current literature. As such, this paper will analyze and critique the article, paying…