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Enron scandal ethical issues
Enron scandal ethical issues
Enron scandal ethical issues
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Integrative Case – The Downfall of Enron Part I 1. Ken Lay served as CEO and chairman and Jeffrey Skilling also served as CEO. They both were responsible for planning, organizing, controlling and leading the company. They set goals for the company and organized how they would be achieved. Kay’s role was as the figurehead and the leader. He also served as the spokesperson for the company and made many of the decision on the future of the company. As CEO’s they both possessed effective communication skills, where decisive, which was evidenced by their vision for the company and refusal to admit wrong even at the end, and visionary. Throughout Lay’s tenor the company continued to grow and prosper at a fast pace. 2. The challenges faced were those of a changing workforce, competitiveness, and globalization, as well as ethics and social responsibility. While many companies were downsizing in the mid-1980s, Enron continued to grow and expand despite their lofty goals. They ventured out into foreign markets to be more competitive. The workforce also became more diverse and the characteristics changed. Employees during Enron’s tenor were less devoted to long-term career prospects; instead they were more interested in financial gain at any cost. Ethics seemed to be a secondary thought for most people during Enron’s time. To meet these challenges Enron executives had to make working for their company more attractive and lucrative. 3. The contributing factors to their ineffectiveness were poor planning and leadership. The company grew to quickly. In their desire to grow and expand, the company’s senior management did not establish and follow ethical practices that would sustain the company. Controls were not established in key places, such as, accounting practices and principles. Senior management failed to appropriately manage the activities of lower level managers and set a bad example. Part II – The People 1. Enron sought out young, ambitious, recent college graduates and placed them in entry-level positions and then gave them the autonomy to make big trade decisions. The few star performers were promoted very quickly. Taking this hiring approach benefited the company because it kept labor costs low due to the employee’s inexperience. It also ... ... middle of paper ... ...y grew and prospered very quickly. Employees were motivated to be creative and come up with the next great idea or innovation to increase revenue. These values also hurt the company because it put constant pressure on employees to achieve and constantly pushed them to excel in order to produce more revenue for the company and advance in the company. This forced employees to use unethical practices. They were often left to use their own devices to achieve the aforementioned results. There were no checks in balances in place with respect to managing subordinates. 3. Organizations must change in order to meet the needs of the changing workplace, environment, technology, and economy in order to be competitive. Change is good for an organization if it is done in a controlled and structured manner. Change is also risky because it is often met with resistance. For example, people may feel threatened and fear power loses and subsequently, resists the change. Change can also be ineffective if it is narrow and doesn’t concern itself with people and is over determined. In Enron’s case, the organization was constantly changing with no collective rhyme or reason.
Management does not communicate with the workers, so they cannot discuss problems that are accruing, and possible solutions that may help the business run smoother. You can see this at Carson’s, the study mentioned that employees had no say in important decisions and were even afraid to address concerns to management. The study also mentioned that employees were not given proper constructive criticism. Instead of management teaching employee’s better ways to handle tasks, they would get upset and punish their employees. This is another aspect to an Exploitative Authoritative structure. According to text, all rewards are given to management. Instead of rewarding good things that their employees do, management punishes and threatens. After looking at the Exploitative Authoritative System that was used to run the Carson’s location, it is easy to see how and why the employees are
In the book Red Star Over the Pacific: China’s Rise and the Challenge of U.S. Maritime Strategy, the authors discuss their interpretation of Chinese strategy as it relates to the U.S. maritime power in the Western Pacific. Dr. Yoshihara and Dr. Holmes postulate that Chinese strategists have studied Alfred Thayer Mahan’s theories of sea power. He further expounds on “China’s ability to harness such power against others or to nullify the overbearing power adversaries hold in important sea areas.”1 The book continues by presenting an argument that Chinese strategist use a combination of Mahan and Mao Zedong to cover the strategic and operational levels of war for the ultimate purpose of building maritime power in order to build a great nation. This may be one explanation for current Chinese strategy, but is there another, possibly more practical explanation? This paper will present an alternate, more practical approach to today’s Chinese strategy. Contrary to a Mahanian approach, China bases its strategy on the practical needs of a great nation undergoing a ‘peaceful development’ supported by concepts from the Chinese military classics. In essence, the development of Chinese Anti-Access/Area-Denial (A2/AD) and maritime capabilities comes as a result of the need to maintain social harmony and safeguard national interests, not in order to develop command at sea as Mahan theorizes.
Thomas Wright’s “The Fall of the Unipolar Concert” describes the decline of U.S. global power to other states like Russia and China. It claims that these countries have been initiating revisionist and power balancing measures that threaten U.S. global hegemony. Russia brings back a light red scare by annexing Crimea to stop the expansion of the European Union and NATO, building up its military capabilities, and executing special military operations (Wright, 8). China has strengthen its claims on the South China Sea through aggressive marine operations which have created tensions with Vietnam, the Philippines, Malaysia, Brunei and the United States. China has station and intimidated the surrounding countries where they claim as their economic exclusion zones while blocking the U.S.’s freedom to navigate the waters.
A documentary film released in 2005 called the Smartest Guys in the Room reveals the shocking collapse of Enron. The Smartest Guys, Kenneth Lay, Jeff Skilling, Andrew Fastow, Lou Pai, Clifford Baxtor, and Arthur Anderson, were all involved with America’s ultimate Corporation Scandal. But who do we blame? Enron had over 20,000 employees and was founded by Kenneth Lay, CEO of Enron, in 1985. Lay wanted to push his views of deregulation which pushed him to start the company (SGR). The first event that happened leading up to the downfall was the president, Mr. Borget, and his traders manipulating the company’s earnings and exporting the profits to their personal account. When Lay made the decision to not fire them, it definitely raised the
Bearing in mind that the threat of China’s dependency on imports of natural resources has the potential to threaten the official ideology of Confucianism, the real threat is to the interests of the state and the Communist Party of China, because the future of the party and stability of the country is dependent on the continued growth of the Chinese economy. Maintaining the flow of raw materials is the main objective of the PRC because without them the economic engine of the China would be at a stand still, which has the potential to be seen by the people of China as a weakness and flaws in the current governing system. China should continue developing trade relations and international connections because the PRC has been remarkably successful in creating a network of countries who will be loyal in business and political reform. China has has a strategic focus on building relations with nations whom America is not keen on. This has also perpetuated the realization the the Chinese system of governance provides a second option to the ‘Western Consensus’, as a viable means for successful economic growth coupled with strict government control. China must operate multilaterally to continue the trajectory of relation and loyalty building in other countries. This will assist china with the key pillar goals of, building a comprehensive national power; advance incrementally in order to consolidate a position of strength, and maintaining stability, and with the objective that China will be in the position to continue imports of raw material to Chinese industry in the event of a sea trade embargo from opposition countries like the United...
China must feel secure in its new place as a global power before any true shift may occur. This can only happen if several conditions exist. First, Beijing must no longer feel threats of containment from its neighbors and the United States. Second, China must become content with its military power and begin to see preserving a status quo in military strength as desirable. Third, the outstanding territorial disputes must be resolved. Finally, the security of each Asian nation must become so intertwined that bilateralism becomes ineffective in dealing with rising issues. Until all these conditions exist, China will not truly embrace economic and security multilateralism, and the result will continue to be the incohesive, hypocritical foreign policy that China practices today.
Cognitive Behavioral Therapy is used by most counselors to change clients though process hoping that it changes the outcome of their situations and problems. CBT is used amongst most agencies.
Cognitive Behavioral Therapy (CBT) is a type of treatment to “help people see the relationship between beliefs, thoughts, and feelings, and subsequent behavior patterns and actions.” This therapy works by finding ways of helping a person understand what their perception is and how this might impact their well-being. Instead, they look at how they feel and act rather than them thinking it is based on what they do. This is done by “adjusting our thoughts, we can directly influence our emotions and behavior” (Good Therapy, 2017). With this in mind, understanding the person’s thought process can determine what can be causing the individual to feel a way. Furthermore, this therapy will “help unclear negative reactions and learn new, positive emotional
There may be those individuals who work better under a more structured therapy, such as CBT, and the clear identification of cause and effect from cognition and emotion towards the ensuing behavior. Cognitive therapy model encourages clients to remain in the here and now. The behavioural therapy approach may not benefit those that are not willing to explore their past and likely this model will not be successful under these circumstances. Clear guidelines for therapy are set in CBT, while goals are set for Person-Centered therapy but they are long-term without set goals for the therapeutic
Cognitive Behavior Therapy (CBT) is a form of therapy that puts an emphasis on our thinking rather than external influences. It is not a stand-alone or distinct type of therapy but is a more general term for many different types of therapies with similar qualities and approaches. Among these other approaches are Rational Behavior Therapy, Rational Living Therapy, Cognitive Therapy, and Dialectic Behavior Therapy. The idea behind CBT is that our thoughts, actions, and behaviors are caused by our feelings and not outside influences like events, people, and various situations. If we change our thought we can change our behaviors and deal with these outside influences more effectively. This method makes change easier in that it
In CBT, therapist and clients work with each other to recognize the behavors which may bring about dispair, and the therapist utilizes
Additionally, in the book US FOREIGN POLICY, Michael Cox (2012) concluded that “China’s peaceful rise has largely consoled its neighbors and the United States that it remains a status quo power. However, as it has risen, there are some (perhaps an expanding number) who predict this will lead to increased regional and global competition” (p.266). Clearly, Michael Cox indicated the point that there might be more competitions in the future relation between China and the rest of the world no matter China rises peacefully or not. In particular, China and the United States will face many intense issues since they are the two giants in th...
In many circumstances, employees’ behaviors are likely to follow their leader. Enron’s leadership has been extremely influential due to exemplified charismatic. For example, Heffrey Skilling and Kenneth Lay, CFO and one of executive member in Enron, greatly encourage employees to follow their lead. Their incompetence accounting profession directly affects lover level of employees. Eventually, those manipulating accounting activities affect company collapse. Once leadership has done unethical professional accounting behaviors, unethical acts become accepted. Employees have many reasons for remaining quiet. While Enron still have ethical internal rules, when leadership in Enron did not abide and did not provide corresponding example of employees to follow (Prentice 2003, p. 417). Which eventually make Enron’s become one of the largest corporate scandal frauds.
Cognitive Behavioral Therapy, or CBT, is a type of psychotherapy founded by Aaron T. Beck. It is a type of talk-therapy that is done with a therapist and a client, or in group therapy. A key assumption of CBT is this cause and effect relationship between thoughts and behavior. It focuses on the interrelated relationships between thoughts, feelings and behavior. While looking at the idea that these are interrelated a key assumption is that changes in thought patterns will affect thoughts and moods. Cognitive Behavioral Therapy is used to treat children, adolescents and the elderly. It is most effective in helping conditions like depression, eating disorders, substance abuse, and anxiety disorders. The goal of this therapy is to control and change distorted perceptions and create accurate perceptions of self, others and events for a client. In CBT a patient gains skills to cope with their thoughts so that they can change their behavior in a positive way. CBT therapy usually lasts 14-16 weeks, but it depends on the patient and their needs and availability. The goal of this type of therapy is realism where a patient needs to be able to
For example, having just 12 sessions of CBT can be as helpful in tackling depression as taking medication throughout the two-year follow-up period. This research suggests that CBT helps bring about a real change that goes beyond just feeling better while the patient stays in therapy. This has fuelled interest in CBT. Cognitive behavioral therapy is not a miracle cure. The therapist needs to have considerable expertise – and the client must be prepared to be persistent, open and brave. Not everybody will benefit, at least not to full recovery, in a short space of time. It’s unrealistic to expect too much” (Martin, B.