Enron Boosted profits and hid debts totaling over $1 billion by improperly using off-the-books partnerships; manipulated the Texas power market; bribed foreign governments to win contracts abroad; manipulated California energy market Using this company as an example, highlight the dangers involved in undertaking change without careful consideration of where "change" might lead.© BrainMass Inc. brainmass.com October 25, 2018, 5:18 am ad1c9bdddf
First of all, anytime there is to be change made in an organization, all stakeholders must be taken into consideration. Also, the effects of the change on the stakeholders must be taken into consideration. I will give you an example of this: If you owned a restaurant, and decided to spend $10,000 to upgrade the facility and in order to do this you must reduce the workers in your establishment. The stakeholders in the scenario are not just you the owner, but all employees, all people who have invested money in the business, stockholders if any, and any other person involved with the organization. A good decision maker takes all of these people into account and considers how change will affect ALL of them. In this case, Enron did not do that and the upper executives were only interested in their own financial benefits. Below is more about the Enron case:
The Enron case is the biggest bankruptcy case to date in the US. It also caused the accounting firm of Arthur Anderson to dissolve. As I mentioned earlier about stakeholders, Arthur Anderson was a significant stakeholder for Enron because they handled all of their accounting needs, hid their profits, and stood behind Enron until the end. Enron nor Arthur Anderson thought of potential pitfalls and downfalls before doing ...
This paper deals with the Enron scandal in the US and how to better manage a company. This paper also identifies was in which decision makers can make better decisions and advice on taking all stakeholders into account when making those decisions. Change is not always received as positive among staff members, but making change for your benefit, or deceiving those around you for your own sake, is highly unethical and immoral.
The Corporate Scandal
Improper change is dangerous and could lead to charges of fraud and bankruptcy. Go to www.Forbes.com to The Corporate Scandal Sheet (http://www.forbes.com/2002/07/25/accountingtracker.html) to select one company to research. Using this company as an example, highlight the dangers involved in undertaking change without careful consideration of where "change" might lead.
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