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 adopt such
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full control over the organizational structure of your business and you can also exert a strong influence over the company culture. Business owners need to understand the difference between the two because these aspects of your business can have a major influence on the firm’s success or failure. Basics The organizational culture of a business reflects the mentality‚ work ethic and values of the company’s owners and employees. Some firms are regarded as having a cut-throat culture in which
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Part B: What role did the CFO play in creating the problems that led to Enron’s financial problems? In order to prevent the losses from appearing on its financial statements‚ Enron used questionable accounting practices. To misrepresent its true financial condition‚ Andrew Fastow‚ the Enron’s CFO‚ takes his role involving unconsolidated partnerships and “special purpose entities”‚ which would later become known as the LJM partnership. Taking advantage from the SPEs’s main purpose‚ which provided
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Critically explain why changing organisational culture is so difficult and how managers can do it. Culture can be defined as “a set of basic tacit assumptions about how the world is and ought to be that a group of people share and that determines their perceptions‚ thoughts‚ feelings‚ and‚ to some degree‚ their overt behaviour” (Schein‚ 1996). Organizational culture is depend on differences in norms and shared values which are learned in workplace and to direct behaviour of members in the particular
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“Enron’s organizational culture” Questions for Discussion 1. Explain how Enron’s culture influenced practices outcomes‚ include advantages and disadvantages Answer: the advantages of Enron’s culture are that they were very aggressive (saying yes to other projects) and unethical (corruption‚ corners cutting)‚ in that way the company can generate a quick grow. But the disadvantages are very high; they completely lost control of the company because they gave freedom to young and
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Fraud Auditing and Different type of fraud Introduction Over the years‚ the role of auditors become increasingly important especially in a capitalist economy as the process of wealth creation and political stability depends heavily upon confidence in processes of accountability and how well the expected roles are being fulfilled. An auditor has the responsibility for the prevention‚ detection and reporting of fraud‚ other illegal acts and errors is one of the most controversial issues in auditing
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Contemporary Social Problems and the Workplace Control and Motivation The dictionary defines control as a verb which means “to exercise restraint or direction over‚ to dominate or command.” Control in an organization is very important. An organization that doesn’t have control over its workers or its products will soon find that their profit margin is not growing into what they planned. Like wise an organization that demonstrates too much control over its employees will soon find that their
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Group Inc. is a full service investment bank and security firm. Rajat Gupta was found guilty of leaking inside information to the outside‚ and was sentenced to two years in prison‚ and some pretty hefty fines. Rajat Gupta was not the average fraud perpetrator he was total opposite at least from the articles description of him. The article states‚ “Mr. Gupta’s was a classic American success story. He grew up in New Delhi‚ excelling academically despite the death of both of his parents when
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Enron Case The internal controls that were ignored when LJM1 was created were one‚ LJM’s books were kept separate from Enron’s. LJM1 ignored some of Enron’s entries in the books that were missing. Outsiders owned less than 3% of the Special Purpose Entities equities. There was an error made by Arthur Andersen to let LJM’s financial statement to remain unconsolidated. If the financial statements had been consolidated‚ some of the errors could have been found. They may have even had some time to correct
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Introduction The corporate community has blazed a trail of leadership in the business world. The pervasive influence of the corporate principles has resulted in the emergence of a corporate culture. This culture defines the businesses contained within it. Even though each business unit expresses its own personality on the economic environment‚ the corporate culture always describes the general financial climate. Nevertheless‚ the businesses within a given industry have a say as to how the industry
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