RIS/351 Business Research
February 26, 2013
The corporate world has been revolutionize with the scandal cause by Enron. It has changed the way business will be financially operated going forward and stop unethical business practices . This has cause the government to get involve and create new regulations regarding their financial dealing and operations, when it comes to stockholders and investors. New regulations have been put in place to help and stop this from happening to other companies. The company use unethical behaviors by creating an account called special purpose entity. This would limit the company on what to used the funds. This account could not be use for any specific project. It was a shell firm account to hide the money. Supposedly this account was funded by equity investor and debt finance group. It seems that Enron had created multiple sub-accounts under the shell account under different names s. It show a special purpose entity, equity investors, financial assets, securitization investment conduits, partnership, financial assest,investment trust, real estate this are some of the names used to hide the money from their stockholders and investors.
Who were the injured parties? The injured parties is everyone that was involved with the company. When Enron started stealing and hiding money it cause the investors , stockholders and pension to be dissolve. This has a long-term affect in lost pension of hundreds of people. This will mean they would not be able to retired and will need to continue to work after retirement age. As far stockholders and investment are gone for the lost their live saving. The injured parties will actually be the American people the tax payers and everyone who believe in Enron
How has the unethical behavior affected the organization the individual and society s?
The unethical behavior has affected the corporate world. This causes the government to have strict regulations pertaining large company and, they should be monitor with precaution to ensure or to keep from this kind of fraud from happen in again. Big company having millions of dollars at their disposal think they can do whatever they want and tried to hide and think they will not get caught. This scandal cause by Enron push the government to roll out the Oxley bill which was created what’s know a day called (Public Regulatory Organization) or (PRO). In