Lehman

The auditors of Enron did fail in their task of providing a duty of care to all of the parties. The main reason for this is that they failed to correctly audit the assets and financial position of Enron resulting in all stakeholders having no clue about the forthcoming collapse of Enron. This resulted in the stakeholders facing a very critical condition or a phase where in they were not sure if they would be able to recover their investments and debts or not. The auditing process has revealed several issues and findings of problems within the accounting system and the same have been discussed as the primary areas of exposure, areas of possible mishandling of accounts

Also contributing to the outcome of the power struggle were structural features that existed across the financial industry. The whole industry is governed and motivated by profits generated through individual contribution irrespective of the firm’s net performance. This particular industry structure results in the classic inter departmental tensions to maximize the individual department’s profits. To a certain extent, Lehman had to comply with rest of the companies by creating the isolated departmental structure to maintain its top performers. As a result, when a department creates 60-80% of the firm’s profit, the power shifts to the department making the most money. Lehman could have created an alternate compensation strategy to reduce the potential for power struggle between the departments. For example, rather

Ethical leadership is vital for the success of any business; this case study illustrates that the lack of moral values and a healthy ethically incline corporate culture, can lead to scrupulous behavior from the CEO all the way down the company. Scrushy had a demanding and cunning personality, and it was easy for his to influence others in his business to go along with the fraud. Also, having Stanwick and Stanwick, (2013) an active board of directors does have a positive impact on the performance of the firm. Also, good corporate governance supports the ethical requirements established by the stakeholders. A moral leader must cultivate a real ethically driven organization, which has no tolerance for unethical behavior.

For two companies of such severe differences and little commonalities to get along, it requires great patience, and an even greater deal of tolerance. In the last paragraph of the case study it talks about the last minute efforts that Nomura did, before the Ex-executive of Lehman left. We also get a sense of unpreparedness from both companies; that, one did not do homework on the needs and wants of the other. Had they have been more flexible of their cultural beliefs, and worked harder at diversifying their workgroup from the gecko, the outcome might have been different. And both companies would not have had to work so hard to understand the

Enron’s ride is quite a phenomenon: from a regional gas pipeline trader to the largest energy trader in the world, and then back down the hill into bankruptcy and disgrace. As a matter of fact, it took Enron 16 years to go from about $10 billion of assets to $65 billion of assets, and 24 days to go bankruptcy. Enron is also one of the most celebrated business ethics cases in the century. There are so many things that went wrong within the organization, from all personal (prescriptive and psychological approaches), managerial (group norms, reward system, etc.), and organizational (world-class culture) perspectives. This paper will focus on the business ethics issues at Enron that were raised from the documentation Enron: The Smartest Guys

Despite its humble beginnings in 1844 as a simple general store turned financial firm, the Lehman Brothers greed drove their firm into the ground. It seemed as if Lehman Brothers was indestructible. Surviving through the railroad bankruptcies in the 1800’s, the Great Depression of the 1930’s, two world wars, a capital shortage in 1994, and everything in-between, it seemed the firm was built to last. However its inevitable end started in the early 2000’s with the housing boom after the repeal of the Glass-Steagall act.

Many companies are faced with making ethical business decisions on a daily basis. In this essay Nortel a Canadian telecommunications company is examined to understand how a company can become so successful and then plummet to rock bottom over the time span of a few short years. These factors are examined by first understanding the factors that contributed to both the rise and fall of Nortel form an ethical perspective. Following the examination of the rise and fall of Nortel several questions will discussed in detail to include: What mechanism should have been put into place to better align managers and shareholders interest? Was Nortel’s failure based on the failure of individuals or capital market process? Why do businesspeople like Nortel

As we researched the consequences were bankruptcy and losing jobs for many employees, not talking about the investors who lost billions. That moment senior management had to take quick specific ways to improve the situation. Firm was already dead by the time SEC started the investigation against top managers who screwed by making fake papers with revenue overstatements.

This matter is subject to a deeper analysis. It can be looked at from a number of perspectives including anthropological, cultural and psychological. The paper design is presented in a form of a case study which aims to present to the reader the case and has a goal to teach the reader with key issues which were responsible for the financial crisis of 2008 i.e., over landing subprime mortgages, speculations which led to inflated prices and eventually burst the housing bubble causing the banks to be stuck with large amounts of toxic worthless assets etc. The case study gives a concise explanation and the analysis of the ethical/unethical conduct at Bear Stearns which brought it to its demise. It uses this company example to present the key learning objectives to the reader. The strategy used this besides presenting the findings in the case study form also uses narrative research technique which gives an insight of the Bear Stearns’ culture and its business. This case study by no means gives the opinion of the author and solely bases its conclusions on the materials used to design the paper. Therefore, the conclusions are built upon deductive reasoning based on the information available about the financial markets and bout Bear Stearns.

Business Industry has witnessed the outcomes of bad moral decisions taken by business leaders. Enron’s story is only one example of corporate scandals and cases of bad moral decisions, which has not only shaken the public trust in corporations, but also affected the bank accounts of investors and employees. Before the bankruptcy of Enron; it was included in one of the fortune 500 companies after its fraudulent accounting case the share went down to $1 (Enron scandal, 2010; PBS, 2002; Godwin, 2006; Godwin, 2008).

It seems like business morals and ethics are being whisked to the side in lieu of the ever growing demand of higher stock prices, rising budget goals and investor profits. Despite the increased regulation of corporations through legislation, such as, Sarbanes-Oxley, some corporations still find themselves struggling to maintain ethics and codes of conduct within the workplace. In reviewing the failings of the Enron Scandal, one can heed the mistakes that both individual and organization malaise, such as, conflicts of interest, lack of true transparency and the sever lack of moral courage from the government, executive board, senior management and others, contributed to the energy giant’s downfall.

Cable provider Adelphia was one of the major accounting scandals of the early 2000s that led to the creation of the Sarbanes-Oxley Act. A key provision of the Act was to create a stronger ethical climate in the auditing profession, a consequence of the apparent role that auditors played in some of the scandals. SOX mandated that auditors cannot audit the same companies for which they provide consulting services, as this link was perceived to result in audit teams being pressured to perform lax audits in order to secure more consulting business from the clients. There were other provisions in SOX that increased the regulatory burden on the auditing profession in response to lax auditing practices in scandals like Adelphia (McConnell & Banks, 2003). This paper will address the Adelphia scandal as it relates to the auditors, and the deontological ethics of the situation.

Ethics is something that is very important to have especially in the business world. Ethics is the unwritten laws or rules defined by human nature; ethics is something people encounter as a child learning the differences between right and wrong. In 2001, Enron was the fifth largest company on the Fortune 500. Enron was also the market leader in energy production, distribution, and trading. However, Enron's unethical accounting practices have left the company in joint chapter 11 bankruptcy. This bankruptcy has caused many problems among many individuals. Enron's employees and retirees are suffering because of the bankruptcy. Wall Street and investors have taken a major downturn do to the company's unethical practices. Enron's competitors

The collapse of Enron and all of the questions that arise to try and explain how this company failed, it all comes back to the values of management. The last option on our training plan will provide training in ethics. Enron executives and employees were caught in the desire to report ever-increasing earnings in order to keep stock prices rising, and to protect their jobs and wealth in their retirement plans (,2002).

For these reasons, corporate financial accounts do not provide accurate or sufficient information to corporate managers, investors, or regulators. This leads us to recommend that the SEC allow each stock exchange to set the accounting standards for all firms listed on that exchange and to promote the development of industry-specific non-financial accounts to complement the financial accounts (After Enron 53). The most important lesson of the Enron collapse is that every link in the audit chain including: the audit committee and the board, the independent public auditor, the bankers and lawyers that aided and abetted the misrepresentation of Enron’s financial condition, the credit-rating agencies, and the Securities and Exchange Commission failed to deter, detect, and correct the conditions that led to that collapse. Although not a part of the formal audit chain, most of the market specialists in Enron stock and the business press were also late in recognizing Enron’s financial weakness (Corporate Aftershocks 12).