Enron Ethics Analysis

The Gilded Age was the time Civil War and the World War 1. It is also known for the

If the fraud has not been detected that it might have been gone 10- 20 years undetected. It may have been ultimately detected by the use of checks and balances, and multiple audits through independent auditors. In addition, The US Justice Department should not let WorldCom to go into merger and acquisition as it was creating monopoly. For that reason, they were able to play high.

Ebbers leadership style changed from ethical to unethical during the downturn of the stock market and the effects it had on WorldCom shares. Ebber leadership style created an environment that left for little room for error. During telecommunications stock downturns Ebber was unable to come up with a strategy that would turn things around. During the initial phases of the Commission investigation into WorldCom’s accounting practices, Ebber was questioned concerning several low-interest loans he acquired from the board of directors. Shortly after Ebber was forced out by outside board members. WorldCom upper-level management and individuals in the position of leadership could have taken an ethical stance and collectively formed an opposition against Ebber unethical leadership. This action would have resulted in maintaining an ethical culture within WorldCom. Because of management failure to take ethical stance resulted in several individuals found guilty of accounting

The 1930’s was a trying time for the United States. The United States was a country that before 1930 was on an economic high and lived on the idea of surplus and truly believed in the idea of the Manifest Destiny and in a moment it was all taken away. The stock market crash of October 1929 had been an eye opener for the United States and for the citizens that called this country home and for this reason it showed the resilience that made this country.

The story of Erin Brockovich is indeed one concerning levels of ethical dilemmas. What Erin Brockovich went through in the entire sphere of her job at the law firm with Ed Masry and her case concerning actions of PG&E, depicts quantum of all of the five ethical principles in one jock combined. However, what is of grave appreciation and instrumental value that how she and the people around her, knowingly or unknowingly, portrayed vivid views on personal ethics and contradictions towards internal believes and motives with such brilliance and articulate.

What’s horrifying for a businessman is to see the stock market crash. On Tuesday, October 29, 1929, the United States stock market suddenly and completely collapsed. A renowned historical disaster, Black Tuesday, is attributed by many historians to be the start of the worst financial crisis in U.S. history, The Great Depression. The Great Crash itself had a devastating impact. Hundreds of banks failed, and because bank deposits were uninsured, their depositors lost some or all of their money.

“An entire nation, it seemed, was standing in one long breadline, desperate for even the barest essentials. It was a crisis of monumental proportions. It was known as the Great Depression” -Kathi Appelt. As seen in this quote here, the Great Depression was a time of economic disaster and failure throughout the United States. The Great Depression lasted for many years and brought countless people down in the mess of it all. The three main factors to the economic collapse during this period was the Stock market crash of 1929, the failure of many banks in the United States, and a severe drought.

Many people believe that The Great Depression began when the stock market crashed on October 29, 1929. In the mid to late 1920’s the stock market grew majorly, the stock prices skyrocketed gaining interest from all kinds of people. As stock prices continued to rise, the market became very poplar. Eventually the stock prices started to fall during September through early October, and by October 24 the market was starting to crash. On “Black Thursday” (October 24,1929) 12.9 million shares were traded in order for investors to save what little money they could. When the market actually crashed, millions of shares became worthless and investments were lost. Within a week from “Black Tuesday” the market lost $30 billion leaving millions of people

Beginning in 1929 a worldwide economic downturn the Great Depression began. It was the longest depression ever experienced lasting until about 1939. The Depression started in the United States, however because of the drastic declines in productivity, unemployment, and deflation the Great Depression was felt in almost every country around the world. Only the Civil War ranks ahead of the Great Depression as the gravest crisis in the history of the United States of America.

The false accounting records were unethical because it means management was enriching themselves. They were getting earnings based on the false availability of funds. They also did this to keep their jobs. When a company is not performing financially well the top positions are the ones usually at risk of being retrenched, as a result of implying the company was financially stable they were protecting their jobs.

In this Enron Scandal ,several moral issues and values are being discussed .The moral issues is the misconduct of code of ethics by management level of a corporation , violation of code of professional ,ethical dilemma that faced by a management level when involved own interest .

Ethics (or moral philosophy) is the kind of philosophy that define concept of right or wrong conduct. In practice, ethics try to resolve questions of human morality, by explaining concepts of good and evil.

The AIG Scandal 2005 started when AIG management was issuing a press release describing its third quarter earnings in 2000 to the public. The report showed that the premium of AIG was significantly increasing, while its loss reserves was decreasing by $59 million. However, according to many industry analysts, along with the positive earnings, AIG in fact should show an increase in its loss reserves as well. This caused the investors of AIG suspected that AIG was drawing down its loss reserves to boost its profits. The suspicious of the investors has unfortunately led to the falling of AIG stock price from $99.60 to $93.30 on New York Stock Exchange (NYSE).

This task analysis the issue of ethics in accounting and finance as discussed in the International Journal of accounting and finance. Currently, ethics of any firm is an important topic due to the numerous scandals that have taken place in different countries which have resulted in damage to the economy and society. These scandals have made the morality of accountants and businesspeople. The main contributors of business ethical standards are the accountants. The accounting profession has a duty to play so as to reduce the corporate scandals. They should make sure that there is proper financial management, quality audit, ethical standards improvement and that the governance regimes are strengthened

Business ethics refers to what is right and wrong, good and bad, harmful and beneficial regarding decisions and actions in organizational transactions (Weiss, 2009).