Purchase Solution

Enron & Corporate Social Responsibility

Not what you're looking for?

Ask Custom Question

Where do you think Enron failed in its ethics and social responsibility toward its stakeholders? What according to you should be the top three points for the ethics and social responsibility policy for Enron to avoid the recurrence of the breakdown of ethical standards in Enron?

Purchase this Solution
Solution Summary

This essay describes the unethical plight of Enron and how and what happened that caused shareholderes to lose nearly $11 billion. The essay also examines the consequences of the scandal in which new regulations and legislation were enacted to expand the reliability of financial reporting for public companies.

Solution Preview

According to Wikipedia.org (2010) the Enron scandal revealed in October 2001, eventually led to the bankruptcy of the Enron Corporation, an American energy company based in Houston, Texas, and the dissolution of Arthur Andersen, which was one of the five largest audit and accountancy partnerships in the world; in addition to being the largest bankruptcy reorganization in American history at that time, Enron undoubtedly is the biggest audit failure. According to this site, Enron was formed in 1985 by Kenneth Lay after merging Houston Natural Gas and InterNorth; several years later, when Jeffrey Skilling was hired, he developed a staff of executives that, through the use of accounting loopholes, special purpose entities, and poor financial reporting were able to hide billions in debt from failed deals and projects; Chief Financial Officer Andrew Fastow and other executives were able to mislead Enron's board of directors and audit committee of high-risk accounting issues as well as pressure Andersen Accounting to ignore the issues.

According to Wikipedia (2010) Enron's stock price, which hit a high of US $90 per share in mid-2000, caused shareholders to lose nearly $11 billion when it plummeted to less than $1 by the end of November 2001? According to these authors, the US Securities and Exchange Commission (SEC) began an investigation, and the corporation Dynegy offered to purchase the company a fair sale price. When the deal fell ...

Purchase this Solution
Free BrainMass Quizzes
Business Ethics Awareness Strategy

This quiz is designed to assess your current ability for determining the characteristics of ethical behavior. It is essential that leaders, managers, and employees are able to distinguish between positive and negative ethical behavior. The quicker you assess a person's ethical tendency, the awareness empowers you to develop a strategy on how to interact with them.

Cost Concepts: Analyzing Costs in Managerial Accounting

This quiz gives students the opportunity to assess their knowledge of cost concepts used in managerial accounting such as opportunity costs, marginal costs, relevant costs and the benefits and relationships that derive from them.

Income Streams

In our ever changing world, developing secondary income streams is becoming more important. This quiz provides a brief overview of income sources.

Operations Management

This quiz tests a student's knowledge about Operations Management

Balance Sheet

The Fundamental Classified Balance Sheet. What to know to make it easy.

View More Free Quizzes
Related BrainMass Solutions

  • Enron and Corporate Social Responsibility

    621905 Enron and Corporate Social Responsibility By now, you should be very familiar with the Enron case. In this Module, we will evaluate the Enron debacle in the context of Corporate Social Responsibility.

  • Management Planning at Arthur Anderson

    balance between the ethical, legal and corporate social responsibility standards.

  • Duty and Ethics: Enron

    621995 Duty and Ethics: Enron Discuss how the Enron case informs our understanding of what it means for companies to be "socially responsible." 1.In the context of CSR, in what ways did Enron demonstrate - not social responsibility - but social irresponsibility

  • Corporate Social Responsibility

    This explanation provides you a comprehensive argument relating to Corporate Social Responsibility

  • Socially Responsible Companies

    Do you think society's expectations for corporate social responsibility will change in the next decade? Explain.

  • Value with Ethical Behavior and Good Corporate Governance

    provide a discussion of this case using the following Corporate Social Responsibility approaches: •Normative CSR: Critical Theory, Corporate Governance, Controls; •Values based CSR: Stakeholder Theory, Corporate Citizenship, Corporate Social Performance

  • Enron Scandal and the role of leadership

    Overall, we can say that Enron's leadership laid the foundation of this scandal by clearly violating laws, regulations, corporate governance norms, ethical code of conduct and corporate social responsibility norms of the organization.

  • Ethics and Corporate Social Responsibility

    384004 Ethics and Corporate Social Responsibility With the focus on Managerial Ethics, and Corporate Social Responsibility. Companies such as Enron, WorldCom, Adelphia, and Tyco are recent examples of bad corporate behavior.

  • Ethics and social responsibility

    This regulation pertaining to financial reporting and accounting practices of corporations had a major impact in terms or eliminating corporate frauds and scandals that shook the corporate world after Enron and other similar corporate scandals.

  • Corporate Governance vs Social Responsibility

    161168 What is the relationship between corporate governance and social responsibility? What is the relationship between corporate governance and social responsibility?

View More Related Solutions