University : Holmes Institute
Course Title : HC2121
Uploaded by : Mark polee
The report highlighted the reason for the fall of firm Enron by an assessment of factors such as corporate culture, accounting firm role, and company executives. Business ethics as appropriate policies in the organization were not followed. Enron had not pursued collective capability for moral behavior and its decision making was impaired. The company had used questionable practices to maintain its investment-grade by using off-balance-sheet settlement, sale of special purpose entities, and manipulating third party functionaries for carrying uncounted practice. Enron division was kept separate with less authority to question judgment. The top management used deception and short term financial gain to influence functioning. Accounting firm Arthur Anderson and Merrill Lynch were scrutinized for inadequate practice, conflict of interest. Andrew Fastow as CFO wa....