tells the public or someone in authority about alleged dishonest or illegal activities. However‚ Sharron Watkins only blew the whistle internally and so did not do everything she was morally required do as Vice President of Corporate Development for Enron. 1. Sharron Watkins ignored the first signs of fraud in a selfish pursuit to develop her own career. When first warning signs of fraud happened in 1996 Watkins protested against them to higher management however got no response. Instead of alerting
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ENRON Background and Overview: Enron was famous in the business world. Known as the innovator‚ technology powerhouse and a corporation. It was named the America’s most innovative company for six years by Fortune’s Most Admired Companies survey. The fall of Enron in 2001 shattered not just the business world‚ but also the lives of the employees and the people who believed that their soar to greatness was genuine. It turns out to be the America’s biggest corporate bankruptcy. Before the
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Mr. Red Feliciano Enron Corporation’s Case Analysis Reference: Auditing and Assurance Principles by Jose Ireneo‚ Shirley Ireneo and George James 1. A. Fastow is one of the most responsible because being the Chief Financial Officer or CFO of the Enron corporation‚ he had a major influence. He was guilty of fraud‚ money laundering‚ inside trading‚ and conspiracy‚ among other crimes. Due to his acts such as misleading Enrons board of directors and audit committee on
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disobedience‚ while humanists stress the primacy of the individual conscience. The legal and philosophic aspects of obedience are of enormous import‚ but they say very little about how most people behave in concrete situations. I set up a simple experiment at Yale University to test how much pain an ordinary citizen would inflict on another person simply because he was ordered to by an experimental scientist. Stark authority was pitted against the subjects’ strongest moral imperatives against hurting
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1. What did Arthur Andersen contribute to the Enron disaster? Arthur Andersen (AA) contributed to the Enron disaster when AA consulting became its own separate entity‚ named Accenture. Revenues from consulting services surpassed revenue from auditing services. A natural competitiveness grew between the two rivals and this is where the problems began to start. Management held maximinizing revenues as their primary focus of success and promotions/bonuses were based on this factor. The CEO of AA‚ Joe
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CASE STUDY. my personal point of view.. 3. IF ALL PUBLICLY TRADED FIRMS ARE OPERATING WITHIN THE SAME BASIC CORPORATE GOVERNANCE SYSTEM AS "ENRON"‚ WHY WOULD SOME PEOPLE BELIEVE THIS WAS AN ISOLATED INCIDENT‚ AND NOT AN EXAMPLE OF MANY FAILURES TO COME? The answer to this question lies within the minds of the Enron Managers rather than with the business environment. Most likely‚ these managers are well-educated and may have come from rich families. If this is so‚ then the logical thing
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Behavioral Study of Obedience by Milgram (1963) Background: Some type of authority is necessary when humans live together and obedience is currently a very relevant concept. Throughout World War II‚ millions of people were killed through gas chambers and death camps. Although there was a mastermind behind the plan‚ there needed to be a huge amount of people to carry out the deeds. Some think that this is an ingrained behavior that can override ethical values‚ sympathy‚ and morality. Obedience should
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on Milgram & Zimbardo and explain which study is the most useful in understanding human behaviour in a social situation (focusing on the methods used and findings obtained) and which study is the most unethical. The study of social psychology‚ particularly conformity‚ is very difficult to conduct both ethically and accurately in order to be able to obtain useful results. In the studies done by Milgram and Zimbardo‚ ethics were definitely breached but to what extent were these experiments useful
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tell you to do something and you did it without even considering otherwise? From an early age‚ we are conditioned to respond immediately when an authority figure gives us an order. For this reason‚ I chose an article about a reproduction of the Milgram study that took place in 1963 and established that people will go to extreme lengths to obey authority. The Holocaust was the motivation behind Milgram’s study and we are all knowledgeable of the atrocities ordered by Hitler (Simplepsychology‚ n
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Parmalat It has been named as “Europe’s Enron” – the legend that took down Italy’s milk selling company Parmalat and its controlling executives‚ American banks‚ audit firms‚ even politicians and 130‚000 of its helpless small shareholders after the discovery in the year 2003 of the $14 Billion black hole in the company’s finances. The company’s fraud was uncovered when the company failed to pay the cash to the bondholders. Summary: This discovery led to eight years of court cases in Europe
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