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Corporations, because of their huge impact over many aspects of the economy in which they are operating, are bound with some set of morale to minimize the risk in case something or someone in the system goes wrong. This very term that is the word "wrong" is actually something that the corporation must decide and draw the red line around such behaviours that trigger the definition of being wrong. Companies and big corporations, often outline priorities of value. Some may go safety, wellbeing, and technology; the other one may go technology, science, and media, meanwhile, another company may outline profitability as its most appreciated value. However, the greed for money had always been proved to be the turning point of companies that were one day on top of the chart. Enron scandal is one of the most famous examples of accounting fraud in history. Enron used off-balance-sheet entities to hide the company's debts from investors and creditors. Although using such entities was not illegal in itself, Enron's failure to disclose the necessary details of its dealings constituted accounting fraud. As the true extent of Enron's debts became known to the public, its share price collapsed. By the end of 2001, Enron declared bankruptcy. And it is also interesting to know that before declaring bankruptcy, Enron's share value was priced at $90, and at the time of collapse, it was priced only 26 cents per share. In the year 2000 it had recorded a revenue of more than 100 billion dollars. So, in affirmation to what was said before, it is always good to follow a set of ethical principles. A well-established ethical guideline must be in a direction to ensure the maximum return to the society. It is the only way to keep operating a healthy and prosperous company.
Get your weekly podcast:
https://iconsmat.com.au/podcast/
Corporations, because of their huge impact over many aspects of the economy in which they are operating, are bound with some set of morale to minimize the risk in case something or someone in the system goes wrong. This very term that is the word "wrong" is actually something that the corporation must decide and draw the red line around such behaviours that trigger the definition of being wrong. Companies and big corporations, often outline priorities of value. Some may go safety, wellbeing, and technology; the other one may go technology, science, and media, meanwhile, another company may outline profitability as its most appreciated value. However, the greed for money had always been proved to be the turning point of companies that were one day on top of the chart. Enron scandal is one of the most famous examples of accounting fraud in history. Enron used off-balance-sheet entities to hide the company's debts from investors and creditors. Although using such entities was not illegal in itself, Enron's failure to disclose the necessary details of its dealings constituted accounting fraud. As the true extent of Enron's debts became known to the public, its share price collapsed. By the end of 2001, Enron declared bankruptcy. And it is also interesting to know that before declaring bankruptcy, Enron's share value was priced at $90, and at the time of collapse, it was priced only 26 cents per share. In the year 2000 it had recorded a revenue of more than 100 billion dollars. So, in affirmation to what was said before, it is always good to follow a set of ethical principles. A well-established ethical guideline must be in a direction to ensure the maximum return to the society. It is the only way to keep operating a healthy and prosperous company.
Get your weekly podcast:
https://iconsmat.com.au/podcast/