In 1998‚ Betty Vinson was promoted to a senior manager in the firm’s corporate accounting division. Two years later in her position she experienced a major ethical dilemma. The company WorldCom was a very successful company up until the middle of 2000 when the telecommunication industry entered a protracted slump. The company’s earnings were not Wall Street expectations‚ and it was saddled with unpaid bills. Vinson’s job was to repair the problem by doing some wrong accounting practices. The ethical
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Wan-Ting Shao * Ananya Chandra * Niteesh Chinta * Shraddha Rane * Swathi Punreddy The Rise and fall of WorldCom This case study WorldCom is a telecommunications company which was led by CEO‚ Bernard Ebbers‚ and CFO‚ Scott Sullivan. In 1999‚ WorldCom was not meeting Wall Street’s revenue and earnings expectations‚ and it appeared that the coming year would produce more bad news. The CFO argued for setting realistic targets.
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Q1- Who were the key stakeholders involved in‚ or affected by the collapse of Enron? How and to what degree were they hurt or helped by the actions of Enron management? Ans- The key stakeholders affected by the collapse of Enron were its employees and retirees. Stakeholders and mutual funds investors lost $ 70billion market value. Banks were also affected by the meltdown of the company. They included big banks like J P Morgan Chase and Citigroup. Not only the stakeholder and bondholder lose out
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A CASE STUDY ON ENRON CORPORATE FRAUD (2001) Submitted by: AMIT SHARMA PGDM (016)/09-11 What is FRAUD? In the broadest sense‚ a fraud is an intentional deception made for personal gain or to damage another individual. The specific legal definition varies by legal jurisdiction. Fraud is a crime‚ and is also a civil law violation. Many hoaxes are fraudulent‚ although those not made for personal gain are not technically frauds. Defrauding people of money is presumably the most common type
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Enrons Fall Kenneth Lay – CEO Auditors – Arthur Anderson Jeffrey Skilling – Consultant‚ Hired as a young consultant‚ as due to deregulation‚ Enron incurred massive debts. Jeffrey skilling was hired to come up with innovative new ideas. His revolutionary idea for Enron was to ‘create a gas bank in which Enron would buy gas from a network of suppliers and sell to a network of consumers‚ contractually guaranteeing both the supply and the price‚ charging fees for the transactions and assuming the
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Case 1.4 AMRE‚ Inc. 1. Generally‚ ethics refer to moral principles and values. Random House Webster’s College Dictionary notes that ethics are “the rules of conduct recognized in respect to a particular class of human actions or governing a particular group‚ culture‚ etc.” An individual ’s ethics generally define what that individual believes to be right and wrong. Professional ethics are typically expressed by a code of conduct adopted by an organization that represents a profession. Professions
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Running head: CORPORATE SCANDAL 1 Sheri Bardot Ashford University OMM 640 Business Ethics and Social Responsibility Prof. Tricia Devin Corporate Scandal in America: Week 6 March 17‚ 2012 COROPORATE SCANDAL 2 The unethical business practices of Enron‚ Leman Brothers and Bernie
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Worldcom was the second largest long distance phone company in the United States. The former CEO Bernard Ebbers was sentenced to twenty five years in prison due to increasing revenue the wrong way to increase earnings. This company had the largest bankruptcy filing in the United States. Today‚ the Worldcom accounting scandal is known as one of the worst corporate white collar crimes in history. What were some psychological factors that led to this crime? Financial Pressures from competitors
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Question 1: How did the Corporate Culture at Enron contribute to its bankruptcy? The corporate Culture at Enron could have contributed to its bankruptcy in many ways. Its corporate culture supported unethical behavior without question for as long as the behavior resulted in monetary gain for the company. It was describe as having a culture of arrogance that led people to believe that they could handle increasingly greater risk without encountering any danger. Its culture did little to promote
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Winsett Dr. Frances L. Ayers Accounting 5252-920 27 March 2013 The Fall of Enron: Mini-Case Analysis Summary: Enron was founded in 1985 as a natural gas pipeline company. In the 1990s‚ Enron emerged as one of the leading pioneers in the energy market by building its business around energy trading and international energy-asset construction. Their emergence in the energy-trading sector all started when Enron recognized that they could take advantage their position as the largest interstate
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