Enron Essay

344 Words2 Pages
Answer box 1: When summarizing a case study focus on the critical issues presented in the case as they relate to ethics. What were some of the key ethical issues as they relate to your reading assignment? Rather than stating they made bad choices explain what those choices were. There were abuses of honesty, integrity, conflicts of interest, fraud, and insider trading. Good use of in-text citations. No reference listed. Score 10/15 Answer box 2: The Sarbanes Oxley act has been effective in managing accounting risks but does not address the other risks of ethical misconduct such as honesty, integrity, and insider training that was involved in this case. You covered the concepts of the Sarbanes Oxley act very thoroughly. Webopedia is not considered a reliable resource and should never be used in your research for academic submissions. No reference listed. Score 10/15 Answer box 3: The response to this question should have centered on new legislation and if it would be effective rather than the financial crisis. When unethical issues arise there are usually new legislation created to try and prevent future abuse. It is up to the companies to enforce ethical behavior. If employees are aware that a company will not accept unethical practices and that to act unethically will result in immediate dismissal it will eliminate the problem. Other legislation that has been put in place prior to or after the SOX act should have been discussed in this section. Score 10/15 Answer box 4: Having a team working for you that you can trust is an excellent concept. Ken Lay set up a culture of greed and a mentality that the bottom line profit is what was important. How would you address the issue of the employee reward system and how it contributed to the culture of greed? What would you have done about the conflicts of interest that went on in the company? You are
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