Effects of the Enron Scandal (Kassie) The Enron scandal had a great effect on the United States‚ with an impact on individuals from the consumer level to those running the company as well as the stock market and investors. Throughout the scandal‚ 4‚500 employees lost their jobs and investors lost approximately $60 billion dollars within a few days. The loss of such a large sum of money meant the loss of old-age and retirement security for many of the investors who put their money and faith in the
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College Professional Studies Wal-Mart Group Case Study Team A’s paper will provide an in-depth review of Wal-Mart’s ethical challenges at home and abroad along with how Wal-Mart continues to make corporate social responsibility a priority in its business across the globe. The teams review begins with the history of Wal-Mart‚ which can be traced back to the 1940s when Sam Walton began his career in retailing. In May of 1950‚ Walton purchased a store in Bentonville‚ Arkansas and opened Walton ’s 5
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Arthur Anderson & Co. was also to blame as they were the accountants for Enron. They were the ones with the expertise who should have known better and looked to fully explain and disclose what they knew. Anderson’s commitment is to the shareholders‚ not to their client and they needed to act in a way and present the statements fairly so that a user could make an informed decision and that the statements presented fairly. Enron is also to blame. They were focused on profits – which is not necessarily
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The organisational culture of a business is the collective behaviours of the individuals in a company and the way in which they strive to succeed. Business failure refers to a company ceasing operations following its inability to make a profit or to bring in enough revenue to cover its expenses. A profitable business can fail if it does not generate adequate cash flow to meet expenses. But what are the reasons for business failure? Is it predominantly due to the organisational culture of a company
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CASE 4-1: Bessrawl Corporation Reconciliation of net income from U.S. GAAP to IFRS 2011 Net Income according to U.S. GAAP attributable to equity holders of Bessrawl Corporation ………… $1‚000‚000.00 IFRS adjustments: Add: Reversal of inventory cost written down to replacement cost….. 10‚000.00 Less: Additional depreciation of building after 2011 revaluation……..
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Enron: Questionable Accounting Leads to Collapse In the case of Enron‚ it comes down to pure greed and a lack of accountability. From the top‚ there was illegal activity with Ken Lay‚ Jeffrey Skilling‚ and Andrew Fastow who raided the company as though it was their own personal bank. On top of that‚ the culture of the rest of the company was to make as much money as they could and employees were rewarded by the amount of profit they could make without questioning the ethical means to do so.
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The central text for this project is the film Enron: The Smartest Guys in the Room by filmmaker Alex Gibney. This film investigates‚ documents and then exposes the many moves that led to the collapse of Enron. The director focuses on the chief leaders of the corporation as his principal characters in order to develop the story as a human tragedy. Throughout the course of the film‚ each leading character is revealed. All players were found to be distinct in their strategies and methods. However
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Settled a shareholder class-action suit for $457 million. SEC fined ArthurAndersen $7 million. Fun fact: After the scandal‚ new CEO A. Maurice Meyers set up an anonymous company hotline where employees could report dishonest or improper behavior. Enron Scandal (2001) Company: Houston-based commodities‚ energy and service corporation What happened: Shareholders lost $74 billion‚ thousands of employees and investors lost their retirement accounts‚ and many employees lost their jobs. Main players: CEO
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How did the corporate culture of Enron contribute to its Bankruptcy? Once a sound company listed in fortune 500‚ Enron‚ lead to downfall because of deceptive accounting system incorporated within the organization. Enron’s dubicious finance finally collapsed in Dec 2‚ 2001 as it filed Bankruptcy in New York Bankruptcy court. The corporate culture of Enron focused on financial performance neglecting the stakeholder’s value .The relentless emphasis on the importance of the shareholder’s value created
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..………………………………………………………15-16 THE ENRON HISTORY…………………………………………………………….17-18 THE ENRON CULTURE ……………………………………………………………….19 LEADERSHIP FAILURE ………….. ………………………………………………20-21 LEADERSHIP DISCUSSION ………………………………………………………22-25 CONCLUSION…………………………………………………………………………..26 REFERENCES ………………………………………………………………………….27 ENRONE: Failure of Leadership Executive Summary Enron stands out as one of the biggest failures in business history. In 2001‚ Americans were appalled
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