Enron Critical Thinkings Samples For Students

Priority: High

Re: Reforming Corporate Ethics
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It is a matter of urgent concern that corporate ethics is still not fully followed up to satisfactory levels either due to ignorance of some business people or because they have been taken for granted. By definition, legal environment consists of ethics in business, is the motivation on opinions and ideas on perspective of wrong and right in the business environment entailing virtues and recognizing the governing laws. Business ethics tend to have varied perspective whereby it is associated with developments, corruption and also organisation’s systems. The levels and rate of unethical ...

Organizational Change

The corporation of Enron was an American commodities, energy and services company that is located in Houston, Texas. The CEO of Enron was Rebecca Mark until she moved to be the leader of water business that had been acquired by Enron. Rebecca Mark assumed a crucial role in developing the largest international endeavor of Enron which is the Dabhol project which is located in India. Before its demise in December 2, 2001, the corporation had an approximate of 20,000 employees and was one of the leading natural gas, electricity, communications, paper and pulp companies with revenues of about $101 ...

Virtue Ethics

The Merriam-Webster Dictionary interprets the words “truthful” and “truthfulness” as such which “contain, tell, or express the truth” (n.d.). Basically, the word “truth” stands for a situation where something or someone depicts sincerely any unfolding of events free of deception or fraud which cannot be told about Enron’s business. The story states that the first stage of the company’s business engagement involved the energy market and in particular, trading in gas (specifically, it included a commercial chain of purchasing gas from producers and then selling it back to utilities companies) (Healy & Palepu, 2003).
In other words, Enron ...

Duty ethics or deontology is concerned with the actions of people, not the outcomes. It is the normative ethics that judges the morality of actions based on their adherence to a specific rule or a set of rules. In the terms of business, it means that employees justify their behavior by honoring organizational policies and procedures. There are four primary duty theories.
The first is avered by Samuel Pufendorf in a bygone era of 17th century. He categorized dozens of duties into three subsections as duties towards God, self, and others. He further pigeonholed "duties towards others" into two ...

A) Briefly discuss the treatment of employee stock options under each of the following:

1. Previous FASB/APB/CAP on Stock Options [Hint APB Opinion #25]
APB Opinion 25 calculated stock options employing the intrinsic value technique, in which compensation expense appeared to be realized as the stock price surplus at the grant date divided by the price of option exercise. This technique however overlooked any possibility that the stock price might go beyond the exercise price, since most stock options possessed exercise prices as a minimum equivalent to contemporary market values, compensation expense thus not acknowledged.
2. FASB SFAS ...

Introduction

While many certainly agree that white collar crime presents serious legal issues the sociological implications, regarding deviant behavior, is not always obvious. No discussion inspires a proper balance for analysis without a relevant definition of our terms. According to a ‘Sociology’ glossary, published by the McGraw-Hill Higher Education (2014) group deviance is defined as “Behavior that violates the standards of conduct or expectations of a group or society.” The same glossary defines the concept or theory ‘anomie’ as a Durkheim term for “the loss of direction felt in a society when social control of individual behavior has become ineffective” (“Sociology Glossary,” 2014). In an effort ...

Introduction

Enron has once been named as one of the most innovative American company, according to a survey made by Fortune Magazine (Healy & Palepu, 2003). Its rate of growth in the stock market is unbelievably exponential as reports had said that its stock’s growth reached up to 300 percent once. That kind of growth can be described as superb when it comes to business because that would only mean that the sales had hit way past the profit borderline. Furthermore, the growth lasted for some period of time until the company gained too much prosperity which is the reason ...

Integrity

Introduction
Warren Buffet, who is the Chairman and CEO of Berkshire Hathaway, stated "In looking for people to hire, look for three qualities: integrity, intelligence, and energy. And if they don’t have the first one, the other two will kill you" (Anderson 2012). Indeed, integrity is that special virtue of one's character that makes a person trustworthy to others. Integrity is the very foundation of principles and values that form the core of a person. Integrity means adherence to moral and ethical principles and the path of honesty. Integrity is extremely valuable and has become a rarity in the present ...

Credit Managers

Credit managers handle various crucial affairs and contribute significantly in optimizing profits of the company. They also play significant role in reducing losses of a company. Considering their important roles, they need some skills in order to carry their responsibility. This paper intends to discuss skills, role and opportunities of credit managers along with discussing the importance of organizational culture in credit management.
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Credit managers should possess problem solving skills. Credit managers face a variety of challenges and issues in their career and they can successfully tackle all these challenges if they have problem solving skills. Since they ...

Abstract

Business ethics is a form professional ethics that addresses moral problems that arise in business environments. Ethics in business encompass avoiding breaking the law, avoiding actions that may result in legal suits being filed against the business and avoiding actions that may damage the image of the company. The scandals that rocked several American companies in early 2000, revealed rampant self-dealing, mismanagement, erroneous accounting procedures and other unethical business practices. In an attempt to restore investor confidence, congress initiated the Sarbanes-Oxley (SOX) Act in 2002. This paper seeks to critically analyze the business ethics issues as contained in the SOX ...