collapse of Enron had substantial and far-reaching ramifications throughout the financial investment field‚ tax compliance professions and the accounting profession. Intense Congressional scrutiny resulted in a new era of transparency in financial reporting‚ stricter reporting standards as provided in Sarbanes-Oxley and substantial penalties for failure to comply with new financial reporting and tax compliance standards in the Internal Revenue Code (Bottiglieri et. al.‚ 2009) Enron Assignment
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concerning the obedience report. (Milgram). Many would argue that Stanley Milgram’s experiment was unethical‚ because they believe that the research caused the subjects psychological stress that was not resolved after the study‚ however‚ I beg to differ. In his own words Stanley Milgram said‚ “In my judgment‚ at no point were subjects exposed to danger and at no point did they run the risk of injurious effects resulting from participation. If it had been otherwise‚ the experiment would have been terminated
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Enron The collapse of Enron Corporation an American energy‚ commodities and services based Company in Houston‚ Texas reinforces why unethical business practices are not the foundation for an enduring and sustainable enterprise. Good business practices is rewarding because it builds sustainable company‚ trust‚ integrity and organizational growth. In the article Enron ethics: Culture matters more than codes‚ reminded us that before the scandal‚ Enron appeared to have the best organization
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In the last 40 years or so‚ the business world has earned a bad reputation. Companies like Enron and individuals like Bernie Madoff‚ who perpetuated the stigma that profitable businesses must operate based on the shareholder strategy‚ have ruined public perception of an entire industry. What is often forgotten is that these companies and individuals are the minority. Every individual can stomp his feet and stand on his soap box and say how he would’ve acted differently if he was placed in the aforementioned
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The Enron Kaiwing Ho Ethics‚ Governance & Accountability BU.135.301.U2.FA12 Professor Crain November 21‚ 2012 Enron Since Enron Corporation has been bankrupt there were 20‚000 employees lost their jobs‚ medical insurance and average severance pay was only $4500. However‚ the top executives were paid bonuses totaling $55 million. In 2001‚ employees lost $1.2 billion in retirement funds and retirees lost $2 billion in pension funds. Yet‚ Enron’s top executives cashed in $116 million
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Similarity #1. Participants in both studies had a difficult time ending their participation‚ and most continued all the way until the end. The reasons for this were similar in both studies. Similarity #2. Both Milgram and Zimbardo stated reported the effects of personality differences were very limited. For Zimbardo‚ the only personality characteristic that seemed to have any effect was authoritarianism; and this characteristic was important only for prisoner behavior. Those prisoners who were
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The Milgram experiment‚ as it is now called‚ was considered a turning point in social psychology and the science of obedience. In a new study from Poland‚ a group of researchers wanted to see if the premise held up. That is‚ 50 years later‚ would people still respond to an authority figure in the same way as they did in Milgram’s original experiment? "Upon learning about Milgram’s experiments‚ a vast majority of people claim that ’I would never behave in such a manner‚’" study co-author Tomasz
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Enron: The Smartest Guys in the Room Importance of Accounting Accounting is important because it manages the checkbooks of company which are important to analyses and determine the success of the business by looking through the different account statements and translating the company documents. An accountant or accounting firm starts and maintains auditing of a company. Accounting is also important because it offers a great assistance in planning the future investments as well as being able
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Based in Houston‚ Texas an American energy‚ commodities‚ and services company named ENRON CORPORATION was Ranked number 7 on the fortune 500 list in 2000‚ it was one of the most famous and largest integrated natural gas and electricity companies in the world. The company went bankruptcy on December 2‚ 2001. But before that it marketed natural gas liquids around the world and was working as one of the biggest natural gas transmission systems in the world‚ with transmissions over a massive area of
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found in the original experiment (1962) included participants (teacher) giving other participants (learner) dangerous electrical shocks at a very high voltage increasing all the way up to 450 volts. The experimenter (authority) informed both the teacher and the learner participants that although the volts may be painful‚ they are not dangerous. Even though the “teacher” could hear the “learner” yell and scream as they got shocked each time‚ the “teacher” continued with the experiment because the experimenter
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