Enron & Sox Corporate Governance - Essay Example

Comments (1) Cite this document
Summary
The Enron Case study basically revolves around the fact of the deliberate and calculated financial and managerial improprieties that were behind the collapse of the firm. …
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER97% of users find it useful
Enron & Sox Corporate Governance
Read TextPreview

Extract of sample "Enron & Sox Corporate Governance"

Download file to see previous pages The evidence adduced from the different case studies point to the fact that the company sought to build a false image of growth and performance in order to give an impression about its stature, which would be used to deceive the shareholders (Hanilton, 2003). The deliberate manipulation of the company’s balance sheets was meant to sustain its image as one of America’s rapidly growing companies that had stepped out of the conventional ways of doing business to engage new and revolutionary practices that were apparently effective (Topping, 2005). Various factors played together towards the eventual collapse of the firm. Many of these forces were structural while others were strategic (Topping, 2005). Other analysts have pointed to the fact that the macro-economic and micro-economic factors contributed to the eventual collapse of the firm. It might be argued that some of the actions and strategies initiated by the different managers of the firm eventually developed into multiple challenges that led to the collapse of the firm (Hanilton, 2003). Market forces, cultural differences, financial strategies and other factors worked together to contribute to factors that systematically brought down a firm that analysts had endorsed as a model of growth. Fraud and Inside Trading Under the stewardship of Jeff Skilling, Enron manipulated its accounting records so that they did not reflect its liabilities (Hanilton, 2003). ...
Critics have often pointed at this as acts of intimidation and outright unprofessionalism. Through such practices, the company sued several lawyers and the media, which attempted to reveal the true nature of the company (Kluyver, 2009). Another feature of corruption in the company involved the posting of profits and losses in entities that were off-shore. There was also the deliberate concealing of affiliate firms that made losses while only including those firm that were fairly successful. As such the entire financial position of the company was a misrepresentation of facts. From another dimension, there was rampant inside trading at the company. The management of the company gave away confidential and privileged information to firms that had special relation to Enron and other firms that were related to the management (Hanilton, 2003). As a result of these preferential inside trading practices, Enron had adverse effects on trading practices of the American corporate sector. Analysts have pointed out that the culture of Pride, arrogance and intolerance were to blame for the managerial challenges and unprofessional conducts that affected Enron (Gibney, 2005). According to the same analysts it took sixteen years to build their assets from 10 to 65 billion but only 24 days to go bankrupt. The culture of managerial arrogance was also attributed to the fact that most of the personnel at the institution were former nerds, and that they sought popularity by compromising on ethics and professionalism to achieve their goals. While stepping out of the traditional forms of business management and organizational strategies, the firm did not adequately engage with the internal challenges of dissent and the cultural challenges of initiating new ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Enron & Sox Corporate Governance Essay Example | Topics and Well Written Essays - 1500 words”, n.d.)
Retrieved from https://studentshare.org/management/1457353-enron-sox-corporate-governance-essay
(Enron & Sox Corporate Governance Essay Example | Topics and Well Written Essays - 1500 Words)
https://studentshare.org/management/1457353-enron-sox-corporate-governance-essay.
“Enron & Sox Corporate Governance Essay Example | Topics and Well Written Essays - 1500 Words”, n.d. https://studentshare.org/management/1457353-enron-sox-corporate-governance-essay.
  • Cited: 0 times
Comments (1)
Click to create a comment or rate a document
ke
keelinghank added comment 4 months ago
Student rated this paper as
Perfect work done on the "Enron & Sox Corporate Governance ". I think it is the best sample I have seen so far.

CHECK THESE SAMPLES OF Enron & Sox Corporate Governance

Corporate Governance

...Task Corporate Governance Introduction For quite some time, businesses or firms have been practicing merging or simply acquiring other businesses. This is achieved by having the acquiring company maintain its name while the other company’s name is eliminated. Likewise, the two companies have to set rules of engagement that will ensure that they both operate in a manner that serves both of them well without any unfairness. The rules may be touching on both the firms themselves or their customers. This may be because of taking over of one company by another, buying out of one company by another or simply taking over another company. This is done with the main of financial gains or even avoiding making...
4 Pages(1000 words)Essay

Corporate governance

...? CORPORATE GOVERNANCE …………………. and Number …………….. …………. Words- 759 Corporate Governance The way companies are governed determines their success and the role they may play in the economy as well. Companies in recent years started giving greater emphasis on effective governance with a view to ensure competitive position, attract sufficient capital, guarantee sustainability, and combat corruptions. Corporate governance practices are associated with the development of financial markets, because higher level of governance in most countries are related to larger securities markets and lower...
3 Pages(750 words)Essay

Corporate governance

...Primary data sources 35 Reference 39 Chapter 2: Literature review 2.2 Theoretical review The term “Corporate Governance” has emerged as one of the pertinent debate topic for both business managers and academic scholars. It is evident from the work of various research scholars that people felt the importance of “Corporate Governance” at least 100 years ago. For example, research scholars such as Tinbergen (1962) have raised their concern over effectiveness of corporate governance. In recent times, corporate accounting scandals in companies like Cirio, Enron, Vivendi, Ansett, Parmalat, and Pan...
40 Pages(10000 words)Dissertation

Corporate Governance

... the company and must act only within the powers sanctioned to him and use the same only for purposes which would be beneficial to the organisation. Must take charge of all meetings of the Board when a Chairman is not present, and review plans, agendas and information that are sent to the Board for Board meetings and check on the meeting schedules to assure that there is enough time for discussion of all agenda items. Must serve as liaison between the independent Directors and the Chairman of the Board. Must monitor the self evaluations of the Directors in coordination with the Nominating and Corporate Governance Committee. Rights and Responsibilities of the board of directors at the Collective level Primary decision-making body... in...
8 Pages(2000 words)Essay

Corporate Governance

...?Corporate Governance Introduction The term corporate governance reflects a set of rules and processes based on which business operation is normally controlled and regulated. Corporate governance can be defined as “the set of processes, customs, policies, laws, and institutions affecting the way a corporation (or company) is directed, administered or controlled” (Solms & Solms, 2008, p.2). An attractive theme of corporate governance is its mechanisms that try to avoid the principal-agent problem. In recent years, especially after the collapse of American corporate giants...
6 Pages(1500 words)Coursework

Corporate Governance

...? Corporate Governance of the of the Corporate Governance Q. Enron, Worldcom and Parmalat have generated immense interest in the study of corporate governance and in identifying how board actions can be monitored more effectively. Discuss one way in which you would improve the current scenario in regard to corporate governance. Introduction The corporate world is full of stories and events- some good and some bad, some which make the news and some which never see the light of day. Competition, personal greed, pressure from stakeholders and other sources are some reasons...
6 Pages(1500 words)Coursework

CORPORATE GOVERNANCE

...attributed to the high profile crumbling of numerous big corporations in the United States, including MCI Inc and Enron Corporation. For instance, the US federal government enacted the Sarbanes-Oxley Act in order to restore the confidence of the public in corporate governance5. Corporate governanceCorporate governance is a very essential tool for social and economic development6. This is because it ultimately results in an improved economy, which is very important for all the stakeholders. Corporate governance involves a number of parties such as the...
10 Pages(2500 words)Essay

Corporate governance

..., the firms are not only motivated by financial benefits but play wider roles in the development of the society as a whole. Various stakeholders ensure that the business is having positive impact on the wider imperatives of social causes like environment, better HR practices, effective CSR practices etc. The analysis of stakeholders also helps the firm to proactively support the community welfare and at the same time, meet the changing preferences of the customers, thereby significantly impacting it productive outcome and improving its image and credibility amongst the stakeholders. Answer 3 The corporate governance gatekeepers are people who are in position to influence the decisions and activities of...
2 Pages(500 words)Essay

Corporate Governance

.../corporategovernanceprinciples/31557724.pdf> [Accessed August 22, 2014]. Peters, B.G. and Pierre, J., 2006. Handbook of Public Policy. London: Sage. Stevenage Accountant, 2014. Governance in Different Countries and Organizations. [online] available at: < http://stevenageaccountant.co.uk/governance-different-countries-and-organisations> [Accessed August 22, 2014]. Tonge, A., Greer, L. and Law­ton, A., 2003. The Enron Story: You Can Fool Some of the Peo­ple Some of the Time. Busi­ness Ethics: A Euro­pean Review, 12(10), pp. 4–22. Wanyama, S., Burton, B and Helliar, C., 2013. Stakeholders, accountability and the theory-practice gap in developing nations' corporate...
12 Pages(3250 words)Essay

Corporate Governance

...CORPORATE GOVERNANCE DISCLOSURE PRACTICES AND PROTECTION OF STAKEHOLDERS IN SAUDI ARABIA: RESEARCH FOR A WAY FORWARD A Thesis Submitted for the Degree of Doctor of Philosophy in Law By: () ( Student Number) LLB King Abdul-Aziz University LLM Nottingham Trent University () October 2014 Declaration I declare that, except where acknowledged, this work effort is my own, completed with the direction and advice of my supervisor. Table of Contents Declaration 2 Table of Contents 2 Abbreviations Used 11 Abstract 12 Acknowledgements 13 Chapter One Introduction 14 1.1 Preamble 14 1.2 General Background 15 1.3 Research Significance 16 1.4 Research Problem 17 1.5 Research Methodology 17 1.6 Research Aims 18 1.7...
5 Pages(1250 words)Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic Enron & Sox Corporate Governance for FREE!

Contact Us