Enron Case 10.8.2014 Melissa Becker Boya Du Sidi (Fiona) Chen Wei (David) Yu In June of 2001 Enron’s new CEO‚ Jeff Skilling‚ was heralded as the “No. 1 CEO in the entire country and Enron was saluted as “America’s most innovated company.”1 Just six months later‚ in December‚ Enron filed for bankruptcy. The failure shocked the public and angered investors. How could this have happened? Did no one see this coming? Where were the accountants? Where were the controls? Enron’s public troubles
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is concerned about the results of an action‚ while Kantian ethics is focused about the moral duties‚ Virtue ethics on the other hand place an emphasis on the development of a good moral character. Unlike the first two ethical theories‚ virtue ethics is not a theory about what makes an action right. It answers the question‚ “What kind of individual should I be?” and “What kind of characters are necessary to live a virtuous life? Virtue ethics can be tracked back from the ancient Greek philosopher‚ Aristotle
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Enron Case Study A company’s leadership and culture influences its business ethics. A company’s culture is known as the organizational culture. It is the actions and beliefs of individuals that work at the company. All the shared values and enforced policies contribute to organizational culture. “The leadership culture appears as an integral part of the organizational culture and it can have a positive or negative influence upon the latter.” (Popa‚ 2013‚ p. 179). The organizational culture
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Case Study One: Enron Corporation Richa Chopra Kaplan University Case Study One: Enron Corporation The Enron debacle created what one public official reported was a "crisis of confidence" on the part of the public in the accounting profession. Lists the parties who you believe are most responsible for the crisis. Briefly justify each of your choices. Enron proves to be a classic example of all that glitters is not gold. In 2001‚ Enron was hailed as America’s most innovative company and its
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Enron: Shaping The Future of Ethics In Business “Give me the story– please‚ the story. If I can finally understand the case in simple terms‚ I can‚ in turn‚ tell the same story to the jury and make them understand it as well. I go about my life confused most of the time‚ but when I get something clear I usually can communicate it. Getting it clear is not the work of huge minds‚ which often are baffled by themselves‚ but the labor of ordinary minds that understand simplest of stories… most of all
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Aristotle’s virtue ethics attempts to make peace with crime and restore justice to society by reminding us of the importance of virtue‚ which enables us to overcome negative emotions such as anger‚ revenge‚ and hatred (Williams & Arrigo‚ 2012). Furthermore‚ Aristotle implies that the virtue of forgiveness does not mean that a victim has to no longer be angry‚ but that they overcome their desire to seek revenge that stems from their emotional experience with being angry (Williams & Arrigo‚ 2012).
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Response to organizations in art or entertainment (Enron‚ the Smartest Guys in the Room‚ 2005) Introduction There is a proverb “too good‚ to be true”‚ and it means the same‚ that some things are too great‚ to be real. In business world‚ it is often used to describe market conditions or companies under unbelievable success. Although‚ there were not too many companies that would fit the saying Enron was one of them. In a period of sixteen years‚ Enron’s value grew from 10 to 70 billion dollars
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Nicomachean Ethics on Moral Virtue Aristotle believes that virtue‚ or excellence‚ can be distinguished into two different types. One being intellectual virtue‚ and the other being moral virtue. Aristotle encompasses intellectual virtue as being philosophical wisdom‚ understanding and practical wisdom. He considers moral virtue to be of liberality and temperance. Aristotle distinguishes between the two types using his previous argument about the irrational element. Aristotle shows that the irrational
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The term ethics is defined as a system of moral principles. When incorporating ethics with business it is extremely difficult to determine what is considered moral or immoral‚ as well as what is judged as justice in society. One viewpoint on this topic opposes justice can be compatible with business. The other viewpoint believes there is a line that draws between good and bad; it really depends upon the motive of the action. Is business ethics possible in our present day society? Matigari‚ a
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Enron case 1. What activities and practices of Enron’s management team do you believe were unethical and/ or illegal? Concealing debt By using SPEs‚ Enron’s balance sheet understated its liabilities and overstated its equity and earnings. Enron disclosed to its shareholders that it had hedged downside risk in its illiquid investments using special purpose entities which were lies. Enormous spending Extravagant expenses were rampant in the company which included enormous salary expenses
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