Enron s Impact On The Natural Gas Industry - 2699 Words

Introduction: Enron was founded in 1985 as a result of a merger between Houston Natural Gas and InnerNorth of Omaha. During this time period there was a series of deregulations in the utilities industry which was highly regulated at the time. Enron original business was selling natural gas. Jeff Skilling developed the idea of a â€Å"gas bank† which was the middlemen for consumers and suppliers. Enron decided that if they were to increase their growth they needed to enter other markets due to the increase competition in the natural gas industry. Enron enter in the electric, water, broadband, pulp and paper industries. This new ventures were supposed to create millions of dollars in revenue for Enron; however most of this new ventures were immense failures which cost Enron significant losses. Enron never disclosed these losses to investors or the SEC until October 2001. Through different accounting practices with the help of its auditors (Arthur Andersen) Enron declared revenue numbers in the billions of dollars. Fortune magazine named Enron the most innovative company for six years straight and was ranked as the seventh largest company in the Fortune 500. Investors were in love with Enron although they could not explain how Enron was profitable. A year before Enron declared bankruptcy Enron’s shares were trading in the NYSE for $85 dollars. Many of Enron’s employees were encouraged to purchase company stock and many of them did. Retirees made it part of their 401Show MoreRelatedEnron And The Natural Gas Industry1542 Words   |  7 PagesEnron Background: Enron, based in Houston, Texas, was founded by Kenneth Lay as an energy and pipeline company in 1985 from the merger of two natural gas pipeline companies, Houston Natural Gas and InterNorth. The impetus for Lay to start Enron was the deregulation of the natural gas market in the mid 1980’s, which relaxed the rules on natural gas prices and allowed for more flexible agreements between natural gas producers and pipeline managers. These changes essentially eliminated the practiceRead MoreQuestions On Duty And Ethics1283 Words   |  6 PagesTRIDENT UNIVERSITY Selwyn G. Roberts Module 4 (Enron/Duty Ethics) Ethics 501 Dr. Gary B. Shelton January 28, 2016 DUTY ETHICS Duty-based ethics is a challenging concept to grasp because of the culture we currently live in. Contemplating consequences, whether good or bad is the golden rule when trying to determine the actions one should take. Our legal system is filled with do’s and don’ts which can have a direct affect on a person life. When dealing with external pressures e.g. home, work or peerRead MoreAgency Theory : Relationship Between Agents And The Business Essay1550 Words   |  7 Pagesrisk. Enron, was the world’s largest energy company in 2001. Enron forerunner, Northern Gas Company was incorporated in Delaware on April 25, 1930. From this date through July 1985, Enron had hundreds of purchases and new sub-entity constructions when they acquired Houston Natural Gas Inc. (Kastantin, 2005). On April 10, 1986, the company changed its name to Enron Corporation. Enron was an interstate and intrastate natural gas pipeline company, then later in 1989 Enron started trading natural gas commoditiesRead MoreThe Revenue Recognition Principle Of Enron1091 Words   |  5 Pagesactually is. Looking at Enron, accounting for future costs under the entire contract as expenses was violating the revenue recognition principle since the recognized revenues had not been earned. Yes, the Sithe energies case shows that Enron did not follow the revenue recognition principle. Sithe was one of the first contracts in which Enron employed MTM accounting. The contract was intended to last for 20 years, with an estimated value of $3.4-$4 billion. Through the use of MTM, Enron booked profits beforeRead MoreRise Fall of Arthur Andersen, LLP1016 Words   |  5 Pagesï » ¿ March 4, 2014 Rise Fall of Arthur Andersen, LLP Abstract Enron was a natural gas company that was formed in 1985 by Kenneth Lay. By 1992, Enron was the largest selling company of natural gas in North America. In October 2001 a scandal involving Enron was emerging. This scandal led to the fall of the company. The Enron case and many others cases led to the collapse of other companies that did business with them which included one ofRead MoreEnron s Financial Fraud And Corporate Fraud1700 Words   |  7 Pagesand collapses was occurs in United States. Includes Enron, Global Crossing, Worldcom, Healthsouth, AIG and Lehman Brothers scandals. In the American capital market, the investors abandoned a number of large listed companies leads to the bankruptcy for those companies. The corporate frauds not only deceive investors, but also make oneself paid a heavy price. At the same time, it not only harm the capital market, but also caused a significant impact on American that resulted in regulation changes. TheseRead MoreEnron And The Collapse Of Enron1303 Words   |  6 PagesEnron, a company which originated in Huston, Texas, was one of the largest American energy trading corporations in the nation. Although it was one of the most well known companies, it was also one that crashed and burned the fastest, shocking many people when it did. Not only did it end fast, the company caused quite a scandal wh ich is still being discussed and reviewed in today’s world. Enron’s bankruptcy scandal was so widely known because of the many people who associated themselves with the companyRead MoreFormula For Success : Rise Early, Work Hard, Strike Oil ( J. Paul Getty ) Essay1654 Words   |  7 PagesFormula for success: rise early, work hard, strike oil (J. Paul Getty). Introduction Fracking is a complex political topic, nonetheless, is showing a positive impact to the United States economy and leaving a negative footprint behind on the environment. In addition, consumers are experiencing a significant amount of profit due to the overwhelming supplies of oil, thus, the revolution in new technology is triggering an improper fracking system. This concept centrals to airborne pollution and waterRead MoreEnrons Impact On Enron1417 Words   |  6 Pagesâ€Æ' Many questioned how Enron made its money as no one could verify their revenue that they continually raised each quarter. Even with these questions in the back of people s minds, they continued to believe Enron s executives. Enron was an U.S. energy-trading and utilities company that housed one of the biggest accounting frauds in history. Enron s executives employed accounting practices that falsely inflated the company s revenues, which, at the height of the scandal, made the firm becomeRead MoreThe Rise and Fall of Enron1170 Words   |  5 PagesThe Enron Corporation was founded in 1985 by Kenneth Lay and based in Houston, Texas. Enron was known as one of the world’s leading electricity, natural gas, communications and pulp and paper companies. By the late 1990s Enron was considered one of the country’s most groundbreaking companies constructing power plants, gas lines, buying and selling electricity and gas, and partaking in a unique trading business; creating whole new markets for oddball commodities. In 1995 annual revenues were around

Euthanasi A More Humane Option For Suffering And Dying...

Euthanasia would be a more humane option for suffering and dying patients. Afterall, death row inmates have the option of lethal injection because it is more humane, so why are competent patients not given the same option? Why do we allow people who committed serious crimes to have a humane death, but force innocent patients with severe illnesses, to suffer through the pain? Giving a suffering patient the option to end their misery in a relatively quick and painless way would not only ease their dying process, but it would also provide their family with certainty and give them time to say their goodbyes. Not to mention processes such as â€Å"pulling the plug† and DNR (do not resuscitate) have been in practice for years, and they are relatively the same as physician assisted suicide, but more painful and time consuming. Often, controversy on the legalization of euthanasia revolves around the right to life; anti-euthanasia proponents argue that euthanasia infringes on a person’s fundamental right to live. What they fail to see is that our â€Å"life† as human beings implies death. Without death, we do not have â€Å" human life† by its very definition. Like two sides of a coin, human life cannot occur without death. Therefore when people argue a person’s fundamental right to live, they unknowingly are agreeing that every person has the fundamental right to die. Patients should have the right to decide whether they want to prolong their pain or simply end their suffering because it is

Analysis of Working Class Hero by John Lennon - 1085 Words

g ------------------------------------------------- WORKING CLASS HERO: It’s something to be â€Å"Working Class Hero† is a song made for the class split back in the 1940’s and 1950’s. The song is written by John Lennon, who was one of the singers in the old and legendary band, The Beatles, with Paul McCartney, Ringo Starr and George Harrison. He recorded the song between the 26th of September and the 6th of October; the song was though first released in 1971 in the United States and in UK in 1975. The song was on his first post-Beatles album â€Å"Imagine†. John Lennon was a working class hero himself. At least that is what he says in the end of the song; â€Å"If you want to be a hero, well, just follow me.† The theme of the song is most likely†¦show more content†¦The second phrase tells that if you were a smart or clever kid, then people would hate you, and if you were a dumb fool everybody would despise you. This despises and hate comes from the fact, that kids of the working class were accepted by the other kids if they were different. If the kids were not like the others they would faster become outcasts, and then in the end maybe go down mentally (3rd phrase). And the 3rd verse had 3 more phrases: â€Å"When theyve tortured and scared you for twenty odd years. Then they expect you to pick a career, when you cant really function youre so full of fear† Here, John Lennon is saying that after you have been raised like an outcast throughout your whole childhood, all the bravery for a career, which should have been built during your childhood, simply is not there. The way the people gets â€Å"stepped on† can really be demoralizing, and in the worst case scenario it can make your life completely out of function. All of these troubles because you have a fear of being led down or the chance of becoming an outcast. And the refrain appears again. The 4th verse says: â€Å"Keep you doped with religion and sex and TV And you think youre so clever and classless and free But youre still peasants as far as I can see† In this verse John Lennon is saying that all of us are getting â€Å"doped†Show MoreRelatedAnalysis of Working Class Hero by John Lennon1079 Words   |  5 Pagesg ------------------------------------------------- WORKING CLASS HERO: It’s something to be â€Å"Working Class Hero† is a song made for the class split back in the 1940’s and 1950’s. The song is written by John Lennon, who was one of the singers in the old and legendary band, The Beatles, with Paul McCartney, Ringo Starr and George Harrison. He recorded the song between the 26th of September and the 6th of October; the song was though first released in 1971 in the United States and in UK in 1975. The

Ethical Issues From Titled Article Enron †Myassignmenthelp.Com

Question: Ethical Issues From The Titled Article Enron Ethics? Answer: Introducation The first major ethical issue in the article is the creation of Special Purpose Vehicles (SPVs) by Enron. The company entered into a partnership to raise money and boost its position in the market (Sims Brinkmann, 2003). However, the management applied deceptive methods to mask its declining financial performance. Partnerships allowed the company to sell assets and book revenues before to a partnership. This ethical issue enabled the company to generate huge revenues. Partners and potential investors thought that the company was performing well and continued to invest. Besides, the SPVs included a fraudulent technique to hid debts from the balance sheet. The SPVS is an ethical issue because a conjunction of motive and opportunity leads to an ethical hazard (Pendse, 2012). The second major ethical issue was encouraging employees to invest heavily in the company without informing them of the financial status. The business executives were aware that the company was making significant losses. A few business executives were earning millions of dollars at the expense of the ignorant workers. Most of the employees had invested their life-savings in Enron with the hope of earning good returns. There are indicators that the executives knew that the company would run bankrupt. Jeffery Skilling resigned from his position as the CEO when the accounting dealings of Enron became intricate (Sims Brinkmann, 2003). This issue is an ethical issue because the business management propagated corruption on a colossal scale without considering the employees investment. The situation can be attributed to fraud on a large scale. How to develop virtuous The primary concept is that virtuous is like a skill that can be learned and practised. Hence, humans can learn and practice skills in their daily life. Aristotles virtue ethics is not absolute. There is thus a chance for every human being to develop and enact virtuous. A person can make good judgement when it is desirable or at the right time. Once a person develops virtuous, they will be in a position to express good character in the most deserving events. Consequentialist judges whether the act is right or wrong based on the results of the action (Shaw, 2008). If the results of an action are good, then it will be considered as right. Even if the intentions of a person were wrong, the action would be judged based on the consequences. This theory differs from virtue ethics because virtue ethics judges the action rather than the outcome. On the other hand, non-consequentialist considers the reason for a certain action and not the outcome (Shaw, 2008). This theory judges people on how good their intentions were regardless of the consequence. For instance, if a wrong action leads to a good outcome then it will be considered as good. Conversely, if a right action results in a wrong consequence, then it will be considered as wrong.The main difference in these three theories is about decision making and outcome of the decision. This difference is evident in peoples character and judgments when faced with moral dilemmas. Kelloggs CRS statement The Kelloggs CRS statement is insincere. The CRS statement is structured to convince the public that the company is socially responsible. Additionally, the company aims to attract potential customers to the business. In its CRS statement, Kellogg argues that their products are nutritious and meant to enhance healthy lifestyles. However, different organisations have shown that the Kelloggs products are unhealthy. The Food Commission detected high levels of sugar in breakfast bars. Australian Consumer Magazine found high levels of saturated fats in LCM bars. False information by organisations about their CSR practices might lead to misleading actions (Rhmkorf, 2015). The placement of false information in the CSR is always meant to mislead consumers to purchase certain products. The incidence of Kellogg is similar to other ethical issues whereby companies fail to observe their CRS statements. Kellogg is striving to maximise stakeholders value through its unethical practices. The management might be propagating the view that business exists to maximise shareholder only. Application of Kantian theory Kelloggs CRS statement contradicts the Kantian theory of ethics. According to Kantian, one should never treat another human being as a mere means to an end (Sensen, 2011). Actions are only considered as moral if the autonomy of human beings is respected. Kantian further argues that an action is moral if it is applicable as a universal law. Kelloggs actions are unethical since the company fails to respect human beings autonomy. The sale of innutritious and unhealthy foods is not universally accepted. Due to these aspects, Kellogg is insincere, and its actions are unethical. Perspectives of fair trade that can be considered Fair trade is a broad topic that covers many perspectives. The central theme in fair trade, however, revolves around improving the living standards of people. One of the most important perspectives of enhancing fair trade is subsidising farmers. Farmers can be empowered to produce more even in small scale farming. Apart from producing more, subsidies will also help farmers to produce high-quality products. The products can then be exported to other countries. Another perspective is offering affordable health. Studies have shown that millions of people die annually due to infectious diseases. For instance, Australians living in rural areas experience poorer health status (Thomas et al., 2015). Affordable healthcare will help such community to access primary health care services. The trading rules are further causing a wide gap between the rich and poor. A review of trading rules can help to address this discrepancy. Trading rules should specifically focus on importation. Cheap importations have a significant adverse impact on local production (Oxfam Fair Trade Clips, 2007). Trading rules should be fair and designed to improve equality. Whether corporations have a responsibility to the international community Corporations have a responsibility to the international community. Corporations have a moral responsibility to improve the economy and condition of the community where they operate (Brennan et al., 2011). This aspect insinuates that corporations should not focus on making profits only. Thus, corporations should include their responsibility to the global community in both short-term and long-term goals. The responsibility of the corporations can also be viewed as corporate philanthropy. References Brennan, . et al., 2011. Corporate social responsibility : the corporate governance of the 21st century. 2nd ed. Wolters Kluwer Law Business. Oxfam Fair Trade Clips. 2007. [Online Video]: tombottoms. Pendse, S.G., 2012. Ethical Hazards: A Motive, Means, and Opportunity Approach to Curbing Corporate Unethical Behavior. Journal of Business Ethics, 107(3), pp.265-79. Rhmkorf, A., 2015. orporate social responsibility, private law and global supply chains. Edward Elgar Publishing. Sensen, O., 2011. Kant on human dignity. Walter de Gruyter. Shaw, W., 2008. Business Ethics. 6th ed. Thomsom Wadsworth. Sims, R.R. Brinkmann, J., 2003. Enron Ethics (Or: Culture Matters More than Codes). Journal of Business Ethics , 45, pp.243-56. Thomas, S.L., Wakerman, J. Humphreys, J.S., 2015. Ensuring equity of access to primary health care in rural and remote Australia - what core services should be locally available? International journal for equity in health, 14(1), p.111.