1. For many years‚ strategy and environment of Arthur Andersen changed especially with regards to the materials. The management of Andersen’s businesses reacted to the changing environment by making the related changes to the organizational architectures such as performance evaluation‚ decision right and reward systems. In the book‚ it is revealed that poorly designed organizations architecture in response to the changing environment in term of material can result into company’s underperformance
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its performance was based on four principles: respect‚ integrity‚ communication and excellence. Unfortunately‚ this mission statement was not reflected on Enron’s business performance and it was one of the biggest scandals in the 21st century due to its accounting irregularities and unethical practices. This paper will discuss the history of Enron’s collapse‚ the regulations passed in the U.S. to prevent such a case from happening again‚ and the lessons to be learned from this case. Enron‚ the largest
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Business Horizons (2008) 51‚ 535—540 www.elsevier.com/locate/bushor EXECUTIVE DIGEST Corporate social responsibility‚ corporate governance‚ and financial performance: Lessons from finance Robert Neal‚ Philip L. Cochran * Kelley School of Business‚ Indiana University‚ 801 West Michigan Street‚ Indianapolis‚ IN 46202-5151‚ U.S.A. 1. Just how influential is corporate social responsibility? What can management and‚ in particular‚ business ethics learn from recent research in finance? One of the problems
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which was once called a house of cards but most believe that house of card was just built over gasoline. It became a smoking mirror in few weeks from cash flows in billions of dollars to bankruptcy. The story is not about numbers and complicated transactions but in reality it is a story about executive making ethical or unethical decisions. Bankruptcy of Enron was a huge tragedy to American people and its industries which shook the
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their own gas. These companies often entered into Enron 2000 annual report‚ p. 7. Joseph F. Berardino‚ remarks to U.S. House of Representatives Committee on Financial Services‚ December 12‚ 2001. Bala G. Dharan and William It Bufkins‚ “Red Flags in Enron’s Reporting of Revenues and Key Financial Measures‚” March 2003‚ prepublication draft (~.ruf.rice.edu/—bala/files/dharan-bufkins_ enronjed_flagsS4l 003.pdfl‚ p. 4. 1 2 177 178 Section Six Comprehensive Company Cases long-term “take or pay” contracts
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with Enron’s audit committee or management. Auditors didn’t fulfill their responsibilities to discuss with the audit committee the significant risks (risky employed accounting techniques) identified during the audit risk assessment procedures and their own concerns regarding retaining the Enron as a client. For the board of directors‚ they breached a duty of care‚ loyalty and candor because it allowed Enron to engage in high risk accounting‚ inappropriate conflict of interest transactions and excessive
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“Review of Accounting Ethics” Running Head: Review of Accounting Ethics Cathy D. Brown Professor: Kenneth Lavery Course: BUS 557 Financial Accounting April 28‚ 2013 Review of Accounting Ethics
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1. After watching the movie‚ do you agree that Jeff Skilling and Ken Lay were the “smartest guys in the room” or would it depend on the room? I believe Ken Lay and Jeff Skilling were the smartest guys in the room. The idea of inflating the price of stock and manipulating their income by using potential profits‚ shutting down power plants and next generation ideas (on- demand with blockbuster) was smart. It actually did increase the revenues of Enron. I think their failure was not reinvesting
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CASE STUDY: CORPORATE GOVERNANCE AND THE FALL OF ENRON Introduction to the Enron Case Enron was one of the world’s leading energy traders born from deregulation of these markets in certain US states. It rapidly grew and the world followed suit. It was nominated ‘World’s Most Innovative Large Corporation’ six years in row and valued at 64 times its earnings and 6 times its book value. It had one of the highest paid CEOs in the world in 2000. It led an aggressive and apparently effective expansion
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Table of contents S.no | Topic | Page no | 1 | Corporate governance | 5-6 | 2 | Enron – An overview | 7-10 | 3 | Journey from Enron corporationTo Enron creditors recovery corporation | 10-14 | 4 | Enron’s injured parties | 14 | 5 | Lessons to be learnt | 15-16 | 6 | Satyam – An overview | 17-21 | 7 | The Satyam Scandal | 21-27 | 8 | Satyam Scam Parties Responsible | 27-32 | 9 | Aftermath
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