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Week 6 Impact of monetary policy on business environmentView Full Description
Discuss what monetary policy is. Discuss different instruments of monetary policy. Discuss the impact of expansionary and contractionary monetary policy, specifically the change in interest rate and credit availability, and the process by which these changes impact business’s decision making process.
Submit your initial post by midnight, Day 3. Please, note that a minimum of 250 words for the initial post is required.
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Forum 7 - Corporate Culture 0 unread of 0 messagesView Full Description
Course Objective: Learn how to build in practical measures that will keep the organization on track.
Question posed: Our main topic for this week is corporate culture. Every organization adheres to certain cultural values. Sometimes they are obvious, sometimes not. Frankly, some values are good and some are not. Can you identify and comment on organizational values you have seen. How do you know the organization really believes in these values? Have any values changed? Can you be sure the entire organization has moved in the new direction?
Instructions: respond to initial question by Thursday 11:59pm ET and provide peer responses by Sunday 11:59pm ET. Make sure to review the "Forum Rubric" located in the "Course Announcement" section of the course prior to submittal.
Proof read your post, prior to submittal, to catch grammatical errors.
Explanation & Answer
Attached.
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Enron
Introduction
In spite of having a 74 pages code of ethics booklet, Enron’ still collapsed due to unethical
practices. The company top executives conspired with the finance department and continuously
reported earning overstated with millions of dollars. Considering many investors make an
investment based on the company's earning, Enron stock was highly traded and selling at over 90
dollars (Li, 2010). However, when the scandal was announced, the stock went down with 99
percent (Li, 2010). Bad leadership and moral decay ruined the Enron Company.
Bad Leadership and Moral Decay
To begin with, Enron was ruined due to poor leadership. The company leaders only cared
about their own interests leaving the company and employees in a worse state. For instance, while
the employees couldn't sell the stock as 401K rules restricted them, the top leaders sold the stock
before the collapse (Li, 2010). Consequently, when the company share dropped with over 90
percent, the employees lost all their investments. On the other hand, it is the good leadership skills
of Sherron Watkins, who revealed the financial reports’ irregularities. She risked her job but
promoted the interest of all other parties.
Secondly, moral or distorted behavior led to this ruin. The selfish action of the top
executives portrayed moral decay. For instance, Jeffrey Skilling, together with the accounting
officers, used the accounting loopholes to conceal the massive debts (Rapoport, 2009). If the debt
were reported correctly, it would have shown the true state of the company. Also, the audit firm
also conspired with Andrew Fastow to ignore the issues that questioned the going concern of the
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company where they were, in turn, paid for their efforts. This shows the distorted behavior for both
Andrew Fastow and the audit firm.
Conclusion
Inconclusion, selfish leadership behavior and moral decay led to the collapse of the Enron
Company. The leaders conducted business activities for their own interests and without
considering the success of the business. They distorted financial reports due to their selfish
motives. Failure to follow the available codes of ethics led to the collapse of Enron.
Work Cited
Li, Yuhao. “The Case Analysis of the Scandal of Enron.” International Journal of Business and
Management, vol. 5, no. 10, 17 Sept. 2010, 10.5539/ijbm.v5n10p37. Accessed 27 July
Komić, Dubravka, et al. “Research Integrity and Research Ethics in Professional Codes of
Ethics: Survey of Terminology Used by Professional Organizations across Research
Disciplines.” PLOS ONE, vol. 10, no. 7, 20 July, 2015, p. e0133662,
10.1371/journal.pone.0133662. Accessed 10 June 2019.2019.
Rapoport, Nancy. Scholarly Commons @ UNLV Law Lessons From Enron -And Why We
Don’t Learn From Them. 2009.
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The Impacts of expansionary and contractionary...