Enron Corporation Essay

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Enron Corporation 1) Describe how Enron could have been structured differently to avoid such activities. The law required Enron Corporation to describe its party transactions to shareholders and the member of the investing public in numerous of different disclosure documents. Enron withheld information that were disclosed which ultimately was important for understanding the meaning of transaction. They disclosed that there were large transactions that the CFA had interest. Enron Corporation did not give the CFO’s factual or expected benefits from these previous transactions or provide financial statements in its entirety. Not changing the original structure could have been completely different. Enron made a huge decision by hiring people that was outside the company and giving them the power to make critical decisions that would affect the organization. The reward system within the company changed and gave the Top performers more opportunity for bonus and stock options. Since this system was organized by an internal authority, it did not work too well. People in controls were on the same level so alliances were formed. They were not honest with reviews and the average workers were fearful to report and wrong doing to the superiors in fear of angering the higher ups. This dishonesty started the downward spiral of the unstable culture. 2) Discuss whether Enron’s officers acted within the scope of the authority. Enron’s officers did not act within the scope of their authority. The scope of authority only goes as far as the law will allow. When Enron acted dishonestly and unethically to benefit over its shareholder and members, they were no longer in the scope of their authority. 3) Describe the corporate culture at Enron. Enron’s corporate culture best exemplified values of risk taking, aggressive growth and entrepreneurial creativity. These are

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