"ENRON SCANDAL:ETHICAL ISSUES" Workers 4000 workers were laid off work when ENRON collapsed ENRON only hired the best workers ENRON's management did not allow employee to sell there stocks, in the fear that ENRON share will fall down Workers were given the sense of invisibility Enron rewarded their efforts and paid the top 140 executives $680 million in … Presented by-: Prabhat Mani Tripathi Overview Background of Enron Source of Enron’s problems Ethical dilemma Controversies happened Moral theories Conclusion – Who’s to blame? Although business ethics was seen to have become more institutionalized in the 1990s, in the 2000s evidence came out that more than a few business executives and managers had not been compiling with the public’s desire for high ethical standards. PALLAVI USHMI DEEPA ABOUT ENRON One Of The Worlds Leading Supplier of Electricity, Natural Gas, Communications, Pulp And Paper. Business Ethics Case. identify ethical issues involved in accounting activities. Development Of Power Plants, Pipelines. DRISHTI. 1 Structure: • Company profile • The ethical point of view • The guilty parties • Main “ingredients” of the downfall • Case study • Closing thought. Critical Analysis. Page 2 Background of Enron Once the 20th largest company in the world Enron’s Fall• The Enron scandal was a financial scandal involving Enron Corporation and its accounting firm Arthur Andersen, that was revealed in late 2001.• After a series of revelations involving irregular accounting procedures conducted throughout the 1990s, Enron was on the verge of bankruptcy by November of 2001. Sources. The Enron scandal, give out in October 2 001, Enron Top officials abused their privileges and power, manipulated information put their ow n interests above those of their employees and the public and Ethical Issues of the Enron Scandal: A potential solution Enron's entire scandal was based on a foundation of lies characterized by the most brazen and most unethical accounting and business practices that will forever have a place in the hall of scandals that have shamed American history. CEO, CFO And Chairman Transformed Enron Dramatic Growth Fortune Named Enron “Americas Most Innovative Company” For Six Consecutive SOME IMPORTANT DATES OF THE SCANDAL 1985: Houston Natural … 2 Enron Company Profile • Enron Corporation was an American energy company based in Houston, Texas. Their Q & A appears below: Nakayama: What do you think are the most important lessons to be learned from the Enron scandal? Students will also be able to explain and appreciate the significance of accounting info rmation in corporate governance. The Enron Scandal and Moral Hazard• Enron, the 7th largest U.S. company in 2001, filed for bankruptcy in December 2001.• Enron investors and retirees were left with worthless stock.• Enron was charged with securities fraud (fraudulent manipulation of … Andrew Fastow, the Chief Financial Officer, misled Enron’s board of directors and audit committee on high-risk accounting practices and also pressured their audit and accounting firm to ignore the issues. On March 5, 2002, Kirk Hanson, executive director of the Markkula Center for Applied Ethics, was interviewed about Enron by Atsushi Nakayama, a reporter for the Japanese newspaper Nikkei. ENRON: The Business Failure. The 2000s had a new focus on business ethics. This Enron case study presents our own analysis of the spectacular rise and fall of Enron. This era brought in the many scandals that shook the business world to this day. Duration Two 40-minute lessons Contents Lesson 1 – Case Study: Enron Lesson 2 – Ethical Issues in Acco unting and Corporate Governance 2 2 BAFS Compulsory Part