Enron Scandal: Ethics, Auditing Failures, and Reforms
This paper explains the financial irregularities that were observed in Enron's accounting procedures and the collusion of Arthur-Anderson as accounting firm of Enron to conceal information regarding profit, loss, and earnings of the firm. The paper also describes the appropriate standards that external audit firms should follow while conducting audits. Legal changes in the accounting practices and financial reporting mechanisms are also presented.
This paper explains the financial irregularities that were observed in Enron's accounting procedures and the collusion of Arthur-Anderson as accounting firm of Enron to conceal information regarding profit, loss, and earnings of the firm. The paper also describes the appropriate standards that external audit firms should follow while conducting audits. Legal changes in the accounting practices and financial reporting mechanisms are also presented.
Marketing in Germany vs. the United States: A Comparison
Marketing in Germany
Introduction
This paper compares marketing in Germany with marketing in the United States.
Marketing in Germany
The United States Department of State provides cultural, political, economic and other information regarding the marketing opportunities in Germany. The www.export.gov site explains that Germany is currently the fourth largest economy in the world and it accounts for "…more than one-fifth of European Union GDP" (www.export.gov). Germany is in fact the largest trading partner in Europe for the U.S., and Germany is the sixth largest in the world for U.S. exports. With a population of more than 82 million people, an economy that grew 3% in 2011, and with "…few formal barriers to U.S. trade or investment," Germany is an ideal place for an American company to market its goods and services (www.export.gov).
Enron Leadership, Corporate Fraud, and Ethics Reform
Enron collapsed very quickly in November 2001, and its failure should have been a warning to serious dysfunctions in the entire corporate and financial system, but this did not happen. Its executives admitted that they had falsified its records going back for at least five years, although in reality they had been doing so since the 1980s. When the company filed Chapter 11 bankruptcy it laid off over 20,000 workers and at least $24 billion in pension assets, stocks and mutual funds also vanished (McLean and Elkind 2003). In addition, the Arthur Anderson accounting firm that had been complicit in covering up the fraud and embezzlement at Enron for many years, also went out of business. This catastrophe also demonstrated that Wall Street banks, stock analysts and ratings agencies had either been deceived or allowed themselves to be deceived by Enron when they continually painted a positive picture of the company and its future prospects. Later in the decade, the exact same problem would occur with the banks and investment firms that were marking ‘assets' of dubious values like subprime mortgages.
Enron Scandal: Ethics, Fraud, and Corporate Collapse
The financial collapse experienced by Enron in 2001 was a result of fraudulent accounting practices developed and implemented by executives within the company. These unethical activities resulted in a select few Executives profiting immensely while debts were being concealed through fraudulent practices. Ultimately, these questionable activities were brought to light, resulting in the largest corporate financial collapse in US history up to that point. Recommendations are made regarding directions that could have been taken by Enron to prevent the outcomes that occurred.
Business Ethics, Labor Rights, and Corporate Accountability
Business ethics is an important concept not just in shaping the behavior of our corporations but also in determining their success. The discussion here considers the text by Collins on Business Ethics, examining such areas of discussion as the impact of recent corporate scandals and the early evolution of ethical practice in American businesses.