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Definition of Ethics Comparison between Character and Behaviour Meaning of Business Ethics Relationship between Business and Ethics Characteristics of Business Ethics Enrons Case
Definition of Ethics
Ethics has been derived from the Greek word Ethikos which pertains to character. Ethics can also be defined as morality of science The word morality has been defined as moralis which means behaviour.
Source of income
Enron was originally involved in the transmission and distribution of electricity and gas throughout the United States and the development, construction, and operation of power plants, pipelines, and other infrastructure worldwide.
Enrons case
Enron grew wealthy, it claimed, through its pioneering, marketing and promotion of power and communications bandwidth commodities and related derivatives as tradable financial instruments. Enron was named "America's Most Innovative Company" by Fortune magazine for six consecutive years, from 1996 to 2001. It was on the Fortune's "100 Best Companies to Work for in America" list in 2000, and had offices that were, in hindsight.
Accounting frauds
As was later discovered, many of Enron's recorded assets and profits were inflated, or even wholly fraudulent. Many of the debts and losses were not shown in the balance sheet of this company. The scandal also caused the dissolution of the Arthur Andersen accounting firm, affecting the wider business world.
Effective management
Enron was hailed by many, including labor and the workforce, as an overall great company, praised for its large long-term pensions, benefits for its workers and extremely effective management until its exposure in corporate fraud.
Enron case
In August 2001, Daniel Scotto, a top ranked utility analyst issued a report entitled "Enron: All Stressed Up and No Place to Go" lowering his rating on Enron warning investors to sell securities in the company at all costs since the departure of Chief Executive Officer Jeffrey Skilling would likely cause the company to implode due to it's leveraged balance sheet and questionable corporate activities.
On September 7, 2006, Enron sold Prisma Energy International Inc., its last remaining business, to Ashmore Energy International Ltd. Following the scandal, lawsuits against Enron's directors were notable because the directors settled the suits by paying very significant sums of money personally
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