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Enron And The Supreme Court, A Discussion Of The Lawson (FMR)

686 Words3 Pages

In the following paper, I will summarize an article about Business ethics, also go into detail as to how it helped with contemporary thinking, what ethical issues the business leader faced, how I can apply the information in my field and if it matches my views of ethical behavior. Article Summary The article I have picked to review is called Enron, Sarbanes-Oxley, and the Supreme Court, A Discussion of the Lawson v. FMR. It begins by describing the fall of the Enron company, though the unethical uses of Special Purpose Entities to hide its losses by setting them up and moving any failing values to the SPE to keep the loss from the Balance sheet. The author goes on to describe how the Sarbanes-Oxley after many companies which included ENRON, …show more content…

Also, what steps by congress to prevent it from happening again. By forcing companies to be honest about their profits and losses or face extreme consequences, it states “whoever knowingly …show more content…

He also started to take the focus away from the stated values, such as respect, integrity, communication and excellence which most companies use to build a strong reputation. Instead of setting boundaries, bringing in honest people, showing ethical behavior, adjusting incentives, setting up consequences (watkins, 2015), He made profit the main measure of performance, and the deals they made became more important than fulfilling the contracts. He also came up with the ideas to hide the losses in SPE and keeping them off the balance sheet, instead of admitting the business was failing and taking a loss. Apply information. The whole beginning of the article is a what not to do for a company if it is to survive for a long period. I am going into the field of Business analysis it is extremely important for me to follow the rules of the Sarbanes-Oxley, so that I can help the business prosper by making sure the balance sheet are not misleading, also that there are no false entries in the records. One of the most important things to a company is its reputation within its industry, so it would be my job to make sure that everything is as near to perfect as it can be. Ethical

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