Decision Making Process Of Enron

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the company” (Free, Macintosh & Stein, 2007). The factors that heavily influenced unethical behavior in executives and employees were pressures to meet performance targets and the negative reaction to bad news. These pressures were compounded by a culture of success that prioritized financial gain over ethical considerations. Additionally, the company's evaluation and reward systems promoted unethical behavior, with the compensation plan favoring executives over shareholders and incentivizing rule-breaking and inflating the company's value. This emphasis on personal gain over ethical behavior contributed to the overall unethical climate within the company. The above information is supported by Free, Macintosh & Stein (2007) and should not be altered. crimes without being held accountable. The auditors and accounting firms hired by Enron were not only complicit in the fraud, but they actively participated in it. For instance, one executive arranged for an accounting firm to purchase a poor-performing asset from Enron at the end of a quarter and then sell it back to the company at a profit, creating the illusion of revenue. External partners had a financial incentive to participate in these unethical practices because Enron hired and paid its own auditors, which gave the auditors a reason not to issue an unfavorable report on the company. These illicit partnerships highlight the lack of appropriate controls within the company and how they enabled individuals to commit financial crimes without consequences.

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