Enron and WorldCom Case Study This report is based on the demise of Enron Corporation and WorldCom. Both the firms are demised due to the ethical lapses. These ethical lapses come into existence when managements of the firm‚ uses unethical practices to accomplish the goals of the firm. Maintaining financial and accounting standards in the business practices are necessary. The profession of accounting has become a mockery due to the accounting scandals that took place all over the world in the
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Case 9 Enron: Questionable Accounting Leads to Collapse How did the corporate culture of Enron contribute to its bankruptcy? The corporate culture at Enron was centered on a twisted lack of ethical behavior based on greed and profit seeking. Top management set a tone in the workplace that encouraged risk and rule breaking in the name of revenue. Employees were compensated for unethical behavior that brought money into the company and terminated if they did not reach the monetary levels of
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Accounting Principles and Ethics A health care organization is believed to be a place where there is care‚ organization‚ consistency‚ and support; a place where patients need to feel and see the unity and harmony within the organization. Health care organizations necessitate this consistency‚ unity‚ and organization within because of its dependency on its’ patients and to provide the proper care for such a diverse group of individuals. A health care organization also needs consistency and organization
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models‚ such as moral rights‚ social justice (Waddell‚ Jones and George 2011‚ 148) and utilitarianism (Duska 2007‚ 22-25). This paper will argue that the accord should be signed according to the utilitarian model. The moral rights model argues that decisions should be made to protect fundamental rights of stakeholders and do no harm (Casali 2011‚ 489). The poor working conditions in Bangladesh violate the concept that workers‚ who are stakeholders (Phillips 1997‚ 52-53)‚ have a right to safety (Byrne
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1. The Enron executive team including Kenneth Lay‚ Jeffrey Skilling‚ Andrew Fastow and other executives‚ were the key players in the crisis. The business practices they used when creating hundreds of SPE’s and diverting large amounts of liabilities to those off-balance sheet entities. Enron was aware of the minimal accounting guidelines for SPE’s and used them to their advantage. To create such a complex “paper” structure‚ the executives had to have coordinate their plans with the accountants
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Q 1: Evaluate Enron profit and cash flow performance during the period 1998 – 2000? Profitability Measures Enron’s reported net income grew from $703 million in 1998 to $979 million in 2000‚ totaling 35.1% profit growth for the three-year period. Enron was among the leading of “high performing” companies by sustaining a high earnings growth insight. However‚ as Table 1 indicates‚ Enron’s reported profits were microscopic relation to revenues. Net income did not grow at anything near the same
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Introduction I have lived in Durham County forty 42 ½ years of my life and 2 ½ years in Granville County and has had the same thought for all that time. I’ve never thought of any theory to be right besides Religious Ethics. None of my life I paid attention to any other theory besides Divine Command Theory until I took this course. I was satisfied with just believing there was no way possibly another theory could come close to Divine theory. I researched and read other people opinions and I have
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Animals Moral reasoning using Utilitarian and Rights-Based ethics Utilitarianism values equality of all interest parties. It is on the principle that when making a decision‚ thorough consideration on the consequent cost and benefit must be made‚ and it is on the basis of impartial consideration of all related interest parties that the final decision should be made. Rights-based ethics‚ however‚ value the right of individuals. It is more like individualism. It is on the principle that when making a decision
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could have prevented the fall of Enron. First of all‚ if the board of directors made the right strategies for Enron rather than created hundreds of SPEs to remove assets and debts off balance sheet‚ the picture of Enron could have made a difference. Secondly‚ if the audit committee of Enron could point out all those aggressive and risky accounting treatment and propose solutions‚ then the afterward damages could be eliminate or at least minimized. c. The BOD of Enron should have known about the risks
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Deontological ethics is too rigid in its emphasis on duties‚ utilitarian ethics too keen to override basic human rights. Deontology and utilitarianism are both types of ethics referring to how one reacts in a certain situation. Deontology is based on following a set of duties and sticking to these duties no matter what the consequences whereas utilitarianism is based on choosing the best outcome over a short term and long term even if it means depriving people of basic human rights for example
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