opposite was true. While Enron’s stocks reportedly kept rising in value; the company was losing money‚ not making a profit. Andy Fastow‚ a CFO at Enron‚ came up with the clever idea of hiding Enron’s debt in his own companies. While making Enron’s stocks look better than ever; he also managed to secure a tidy sum for himself; about forty-five million dollars. Fastow was the one person who was primarily responsible for maintaining the company’s superstar image. But cashing in on phony stock markets
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was the only possible explanation of the behavior Criminal. The theory of Sutherland is clearly reflected in this film: “Enron: the smartest guys in the room”. The ambition of the top executives of Enron: Jeffrey Skilling‚ Kenneth Lay and Andrew Fastow led them to commit the fraudulent bankruptcy
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corporation that abused the accounting treatment the most‚ but certainly not the only one. The Enron SPEs were not hidden from the auditors or the investing public‚ but were so extensive‚ invasive‚ and complex that no one‚ including primary architect‚ Andrew Fastow‚ was able to understand the total implications. The 2000 financial statements for Enron included over 90 lines of disclosures about more than 700 SPEs. 1991 The first SPE used by Enron was called Cactus in late 1991 following approval of EIIF
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Andrew Stuart Fastow (born December 22‚ 1961) is an American businessman who served as the chief financial officer of Enron Corporation‚ an energy trading company based in Houston‚ Texas‚ until the U.S. Securities and Exchange Commission opened an investigation into his and the company’s conduct in 2001. Fastow was one of the key figures behind the complex web of off-balance-sheet special purpose entities (limited partnerships which Enron controlled) used to conceal their massive losses. Fastow served
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chief financial officer play in creating the problems that led to Enron¡¦s financial problems? Chief Financial Officer Andrew Fastow was indicted in October 2002 by the U.S. justice Department on seventy-eight federal counts for his alleged efforts to inflate Enron¡¦s profits. The charges included frauds‚ money laundering‚ conspiracy‚ and one count of obstruction of justice. Fastow faces up to 140 years in jail and millions of dollars in fines if convicted on all
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revenues that simply could not be sustained. This unethical atmosphere encouraged Enron’s CFO Andrew Fastow to develop some businesses that existed only on paper which he referred to as Raptors but whose technical term is Special Purpose Entities or the SPEs that received so much notoriety in the press (Zulauf & Grierson‚ 2011). Since these SPEs were essentially off-the-book businesses‚ it was easy for Fastow to keep hiding Enron’s business losses in these shadow companies. This strategy allowed Enron
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Organizational Behavior and the Failure of Enron Germaine Washington LDR/531 February 13‚ 2012 James Kaczynski Organizational Design and the Failure of Enron This is an analysis of how the application of specific organizational-behavior theories could have predicted the failure of Enron. Although there are many types of core topics of organizational behavior‚ the focus of this study will be on how leader behavior and power‚ and motivation contributed to the bankruptcy of Enron. In addition
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Enron Corruption is defined as dishonest or illegal behavior especially by powerful people (Merriam Webster). There is perhaps no company in our nation’s history that further exemplifies this word than Enron. Enron’s history of fraud‚ laundering‚ and deception is now known world-wide‚ and stands as the lead example for future companies practicing unethical behaviors. Enron’s corrupted culture‚ cultivated by CEO Jeffrey Skilling‚ made some very rich while ultimately leaving thousands in ruin.
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Enron: The Smartest Guys in the Room / Lack of Ethics Enron at one time was a Fortune 500 company‚ but in truth it was just a fallacy and a lie for what it truly was‚ an ethically bankrupt company that eventually became a bankrupt company. Henry Taylor‚ a 19th century statesman wrote “Falsehood ceases to be falsehood‚ when the truth is not expected to be spoken”. Enron senior management gets a failing grade on truth and disclosure. The purpose of ethics is to enable recognition of how a particular
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Symbolic Frame Wenqian Shao What Happened at Enron What is the purpose to run a company? How to shape the enterprise culture and values directly affects the strategic management decision makers. If enterprise culture management is ultimately determined by enterprise strategy management‚ the decision makers of Enron obviously ignored the rationality of corporate culture management. When talking about the bankruptcy of Enron Corp‚ Welch‚ the former CEO of GM pointed out the Enron’s despise on corporate
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