How Enron Stole Center Stage
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The Greatest Business Decisions of All Time: How Apple, Ford, IBM, Zappos, and Others Made Radical Choices That Changed the Cour
The Greatest BUSINESS DECISIONS of All Time HOW APPLE, FORD, IBM, ZAPPOS, AND OTHERS MADE RADICAL CHOICES THAT CHANGED THE COURSE OF BUSINESS. By Verne Harnish and the Editors of Fortune Foreword by Jim Collins . ACKNOWLEDGMENTS When you delve into the great decisions chronicled in these pages, you’ll find that in most instances it was the people involved that really mattered. The same holds true for producing this book. First, we want to thank Fortune managing editor Andy Serwer, who, displaying the vision and entrepreneurial spirit we’ve long admired him for, green-lighted this project in the same meeting in which we pitched it and then provided support all along the way. Fortune art director Emily Kehe, working with Time Inc.’s talented Anne-Michelle Gallero, applied their usual elegant sense of style to the design. Carol Gwinn, our copyeditor par excellence, used her superb language skills to save ourselves from ourselves. Steve Koepp and Joy Butts at Time Home Entertainment Inc., the book’s publisher, worked creatively behind the scenes to make this project a reality, and for that we’re truly grateful. And we extend our thanks and admiration to Jim Collins for providing such an insightful foreword to the book. Last, a big bow to the writers and editors on Fortune’s staff who used their in-depth knowledge of business and their nonpareil writing skills to make this book what I hope you’ll find to be a wonderful, informative read. TO DECISION-MAKERS WHO KEEP MAKING THE TOUGH CALLS . TABLE OF CONTENTS Foreword BY JIM COLLINS Introduction By VERNE HARNISH Chapter 1 Apple Brings Back Steve Jobs By ADAM LASHINSKY Chapter 2 How Free Shipping Saved Zappos By JENNIFER REINGOLD Chapter 3 Why Samsung Lets Its Stars Goof Off BY NICHOLAS VARCHAVER Chapter 4 At Johnson & Johnson, the Shareholder Comes Last BY TIMOTHY K. -
Securities Whistleblowing Under Dodd-Frank: Neglecting the Power of “Enterprising Privateers” in Favor of the “Slow-Going Public Vessel”
Do Not Delete 2/14/2012 1:27 PM SECURITIES WHISTLEBLOWING UNDER DODD-FRANK: NEGLECTING THE POWER OF “ENTERPRISING PRIVATEERS” IN FAVOR OF THE “SLOW-GOING PUBLIC VESSEL” by Michael Neal∗ This Note analyzes the SEC whistleblower program, as modified by the Dodd-Frank Act of 2010. It reviews the history of whistleblowing-like statutes in the United States and analyzes the successes and failures of prior whistleblowers after dividing them into two mutually exclusive groups: Insiders, those who are employed by the company against whom they report; and Outsiders, non-employees. The Note concludes that the new SEC whistleblower program is deficient in two ways. First, it does not create an affirmative duty for Insiders to internally report when their employer has a functioning compliance department; and second, Outsiders lack an offensive private cause of action granting them standing to sue on behalf of the SEC. The Note recommends changes to the program that resolve these deficiencies and better align the SEC’s required functions with its resources. The Note concludes that, as enacted, the SEC whistleblower program encourages the avoidance of internal corporate compliance systems, externalizes corporate compliance to a regulatory body already struggling to provide adequate oversight, weakens the partnership between the regulator and the regulated, and has the potential of reversing the positive progression in corporate cultures developed over the past decade. I. INTRODUCTION ....................................................................... 1108 II. U.S. INFORMANT PROGRAMS ................................................. 1110 A. Stealing from the Government—The False Claims Act ................ 1110 B. The IRS Informant Program—“The Reward for Rats” ............... 1114 C. The SEC Informant Program ................................................... -
Sherron Watkins and Whistle Blowing at Enron Ethics of 3
BUSINESS Cases in Corporate Ethics: Contemporary Challenges and Imperatives; Strategy & General Management, Ethics and Social Justice, Organizational Behavior, Human Resource, Operations, Finance and Accounting, Marketing and Sales. Case 2.3: Sherron Watkins and Whistle Blowing at Enron Ozzie Mascarenhas SJ, PhD DRD Tata Chair Professor of Business Ethics, XLRI Jamshedpur, India | Published: June 2015 | Redistribution or use without the expressed, written permission of The Global Jesuit Case Series is prohibited. For information on usage rights, contact the Global Jesuit Case Series at [email protected] ________________________________________________________________________ Cases in Corporate Ethics: Contemporary Challenges and Imperatives Jesuit Series, Madden School of Business, Le Moyne College, Syracuse, NY Donated by: Ozzie Mascarenhas SJ, PhD JRD Tata Chair Professor of Business Ethics, XLRI, Jamshedpur, India June 15, 2015 The fifteen cases in Business ethics included here represent the first installment of the thirty cases promised to the Cases in Business Ethics – The Jesuit Series at the University of Le Moyne, Syracuse, NY. We have added three more. The remaining eighteen cases will follow shortly. The thirty three cases illustrate and depend upon the content of corporate ethics outlined in Table 1. As might be clear from Table I, the Course in Corporate Ethics has three parts: Part One explores the ethical quality of moral agents embedded in the capitalist markets such as the human person, the fraud-prone person, the virtuous actor (virtue ethics) and the trusting executive (ethics of trust). Part Two investigates the ethical quality of moral agencies of executive decisions, choices and actions when supported by ethics of critical thinking, moral reasoning, ethics of rights and duties, and ethics of moral leadership. -
GAO-08-163 Audits of Public Companies
United States Government Accountability Office Report to Congressional Addressees GAO January 2008 AUDITS OF PUBLIC COMPANIES Continued Concentration in Audit Market for Large Public Companies Does Not Call for Immediate Action GAO-08-163 January 2008 AUDITS OF PUBLIC COMPANIES Accountability Integrity Reliability Continued Concentration in Audit Market for Large Highlights Public Companies Does Not Call for Immediate Action Highlights of GAO-08-163, a report to congressional addressees Why GAO Did This Study What GAO Found GAO has prepared this report While the small public company audit market is much less concentrated, the under the Comptroller General’s four largest accounting firms continue to audit almost all large public authority as part of a continued companies. According to GAO’s survey, 82 percent of large public effort to assist Congress in companies—the Fortune 1000—saw their choice of auditor as limited to three reviewing concentration in the or fewer firms, and about 60 percent viewed competition in their audit market market for public company audits. as insufficient. Most small public companies reported being satisfied with the The small number of large auditor choices available to them. international accounting firms performing audits of almost all large public companies raises Percentage of Companies Audited by Four Largest Accounting Firms, by Company Size Percentage interest in potential effects on (Number of companies) 98%98% competition and the choices 100 95% 92% available to large companies 90% needing an auditor. This report 80 71% examines (1) concentration in the 60 market for public company audits, 44% (2) the potential for smaller 40 22% accounting firms’ growth to ease 20 market concentration, and (3) (1,606) (794) (1,190) (907) (498) (516) (1,211) (1,513) 0 proposals that have been offered 2002 2006 2002 2006 2002 2006 2002 2006 by others for easing concentration <$100 million $100 million - >$500 million - >$1 billion and the barriers facing smaller $500 million $1 billion firms in expanding their market Company revenue shares. -
Former Enron Vice President Sherron Watkins on the Enron Collapse
UC Irvine UC Irvine Previously Published Works Title Former Enron vice president Sherron Watkins on the Enron collapse Permalink https://escholarship.org/uc/item/9pb4r7nj Journal Academy of Management Executive, 17(4) ISSN 1079-5545 Author Pearce, JL Publication Date 2003 DOI 10.5465/ame.2003.11851888 License https://creativecommons.org/licenses/by/4.0/ 4.0 Peer reviewed eScholarship.org Powered by the California Digital Library University of California ? Academy of Management Executive, 2003, Vol. 17, No. 4 Former Enron vice president Sherron Watkins on the Enron collapse Academy Address, August 3, 2003, by Sherron Watkins Introduction to the address by Academy President Jone L. Pearce It is my pleasure to introduce Sherron Watkins, the Academy of Management's 2003 Distinguished Executive Speaker. By now, her story as the former vice president of Enron Corporation who tried to bring what she called "an elaborate accounting hoax" to the attention of Enron's chief executive officer is well known. In August 2001, responding to his invitation to employees to put any concerns in a comment box, she did so. When he did not address her explosive charges at a subsequent company-wide meeting, she sought a face-to-face meeting with him. A month later the CEO announced to employees that "our financial liquidity has never been stronger," while exercising his own $1.5 billion in stock options, just ahead of the company's announcement of a $618 million quarterly loss. When United States Congressional investigators uncovered her letter buried in boxes of documents, they brought Ms. Watkins before the United States Senate in February 2002 to testify about her warnings. -
World Trusts Us
Albaraka Türk Sustainability Report 2020 World TTrustsrusts Us Contents 10 KEY SUSTAINABILITY INDICATORS 12 ALBARAKA TÜRK AT A GLANCE 12 Al Baraka Banking Group (ABG) in Brief 14 Albaraka Türk in Brief 16 Albaraka Türk’s Sustainability Journey 18 Shareholding Structure AAlbarakalbaraka TTürkürk is a bank building its entire business momodeldel 19 Our Mission and Vision 20 Our Quality Policy, Core Corporate Values and Strategic Objectives in accordance with sussustainabilitytainability and working for this 22 Operational Map 24 Our Awards purppurpose.ose. 26 MESSAGE FROM THE MANAGEMENT 26 Message from the Chairman 28 Message from the General Manager WWee ccarryarry out aallll our opoperationserations by ttakingaking intintoo account an 30 Message from the Chairman of the Sustainability Committee environmenvironmentalental impacimpactt and trustrustt approach. WeWe consider 32 OUR SUSTAINABILITY ORGANIZATION 32 Al Baraka Goals (2016-2020) the sosocial,cial, environmenvironmentalental and eeconomicconomic vavalueslues we have 34 Strategic Sustainability Areas 36 Sustainability and Social Responsibility Principles within the frframeworkamework of trustrustt and we aim ttoo pass these 37 Principles of Donations and Contributions 38 Our Sustainability Organization vavalueslues on ttoo future genergenerations.ations. 39 Our Committees 40 OUR SUSTAINABILITY ACTIVITIES 40 Our Corporate Governance Approach WWithinithin the scopscopee of sussustainabilitytainability efforefforts,ts, we continue 64 Our Financial Capital 68 Our Manufactured Capital ttoo ttakeake impimportantortant sstepsteps ttoo sosolvelve various worldwide 70 Our Human Capital 80 Our Intellectual Capital probproblemslems such as globagloball warmingwarming,, ccarbonarbon emission and 84 Our Natural Capital 90 Our Social and Relational Capital wawaterter probproblems,lems, and we continue ttoo rereceiveceive the ppositiveositive 94 LOOKING TO THE FUTURE resulresultsts of these ssteps.teps. -
HILDER & ASSOCIATES, PC Attorneys for Sherron Watkins 819 Lovett Blvd Houston, Texas 77006 Office
HILDER & ASSOCIATES, P.C. Attorneys for Sherron Watkins 819 Lovett Blvd Houston, Texas 77006 Office (713) 655-9111 Facsimile (713) 655-9112 Philip H. Hilder Edgar A. Goldberg, Of Counsel UNITED STATES BANKRUPTCY COURT SOUTHERN DISTRICT OF NEW YORK --------------------------------------------------------------------x : In re : Chapter 11 : ENRON CORP., et al., : Case No. 01-16034 (AJG) : : Jointly Administered Debtors. : --------------------------------------------------------------------x REVISED FINAL FEE APPLICATION OF PHILIP HILDER & ASSOCIATES, P.C. FOR ALLOWANCE OF COMPENSATION FROM DECEMBER 10, 2001 THROUGH NOVEMBER 15, 2002 TO THE HONORABLE ARTHUR J. GONZALEZ, UNITED STATES BANKRUPTCY JUDGE: 1. Philip Hilder as Philip Hilder & Associates, P.C. (“Hilder”) counsel for Sherron Watkins, files this Revised Final Fee Application for Allowance of Compensation (the “Application”) for the period from December 10, 2001 through November 15, 2002 (the “Application Period”). STATEMENT OF JURISDICTION 2. This Court has jurisdiction over this matter pursuant to 28 U.S.C.§§ 1334 and 157 and Federal Rule of Bankruptcy Procedure 5005. This matter is a core proceeding pursuant to 28 U.S.C. § 157(b)(2)(B). This motion arises under 11 U.S.C. §§ 327(e), 328(a), 105a, 503 and 330. REVISED FINAL FEE APPLICATION OF PHILIP HILDER & ASSOCIATES, P.C. FOR ALLOWANCE OF COMPENSATION FROM DECEMBER 10, 2001 THROUGH NOVEMBER 15, 2002 PAGE 1 FACTUAL BACKGROUND 3. Sherron S. Watkins was a Vice President of Corporate Development, Enron Corporation (‘Debtors”). Ms. Watkins sounded the alarm having warned Ken Lay that Enron “might implode in a wave of accounting scandals”. Ms. Watkins disclosed the Debtors’ financial improprieties to her colleagues and the authorities. -
Conspiracy of Fools”
Submitted version of review published in GARP Risk Review Review of “Conspiracy of Fools” Joe Pimbley Kurt Eichenwald’s Conspiracy of Fools (Broadway Books, 2005) is a spellbinding account of the rise and fall of Enron. In nearly 700 pages the reader finds answers to “what happened?” and “how did it happen?” Based on retrospective interviews with more than a hundred primary and secondary actors in this drama, the author creates multiple, parallel story lines. He jumps back and forth between these sub-plots in a manner that maintains energy and gives the reader many natural stopping points. The great strengths of Conspiracy are that it’s thorough, extremely well- written, captivating, and, finally, it rings true. The author avoids the easy, simple conclusions that all the executives are “guilty” of crimes or plain greed and that the media-lionized whistle-blower is pure of heart. We see the ultimate outcome as personal tragedies for Jeff Skilling (President) and Ken Lay (CEO) even though they are undeniably culpable. Culpability and guilt are not synonymous, however, and different readers will have widely different judgments to render on these two men. The view of Andrew Fastow is not so murky. He and a handful of his associates did indeed lie, cheat, and steal for personal gain. Fastow’s principle “contribution” to Enron was the creation of structured finance transactions to skirt accounting rules. This one-sentence description doesn’t tell the reader much. Eichenwald gives many examples to flesh out the concept. The story of “Alpine Investors” provides the simplest case. The company wished to sell the Zond Corporation, a wind-farm operator, prior to the closing of Enron’s purchase of Portland General. -
1913 from the Very Beginning of the Firm, Arthur Andersen Insists That All
1913 From the very beginning of the firm, Arthur Andersen insists that all his personnel get the “the facts behind the figures,” thus establishing the concept of a business-oriented audit. The Federal Reserve banking system is created. The 16th Amendment is ratified permitting federal income tax. 1914 The Federal Trade Commission and General Accounting Office are created. The Federal Reserve requires CPA certification of any financial statements submitted in support of applications for loans on commercial paper by member banks. 1915 Arthur Andersen takes the position that a Great Lakes steamship company had to reflect in its balance sheet the economic impact of a major post-year-end event—that is, the loss of a freighter in a storm. This was the first case of an auditor demanding disclosure of an event that occurred after year-end but before the issuance of the auditor’s report. 1916 The firm creates a formal recruitment program for college graduates. The American Association of Public Accountants (founded in 1887) changes its name to the American Institute of Accountants (AIA). 1917 The firm takes the lead in promoting tax work for industries and corporations and introduces a new concept of accounting for construction costs of public utilities, differentiating between overhead costs and direct costs. The first AIA examination is given. The Revenue Act of 1917 imposed the first excess profits tax. 1919 The first chapter of Beta Alpha Psi is established at the University of Illinois. 1921 The firm establishes a government liaison office in Washington, D.C. The American Society of Certified Public Accountants is founded in Washington. -
National Whistleblower Day 2019
PRESS KIT NATIONAL WHISTLEBLOWER DAY 2019 DIRKSEN SENATE OFFICE BUILDING Washington, D.C. | July 30, 2019 11:00AM - 1:30PM National Whistleblower Center 1875 Connecticut Ave. NW, 10th Floor, Washington, D.C. 20009 • [email protected] 202 342 1903 • www.whistleblowers.org 1 Speaker Biographies Jane Turner | Former FBI Agent | Master of Ceremonies Jane Turner worked for 25 years as a Special Agent for the FBI. She is one of the only FBI agents to win a lawsuit under the FBI Whistleblower Protection Act based on retaliation for exposing theft at the 9/11 crime scene. In a second whistleblower case, a jury in Minnesota found the FBI liable for retaliating against her in a sex discrimination lawsuit and awarded her the maximum damages permitted under law. Senator Charles E. Grassley | iowa | Keynote Speaker Senator Chuck Grassley (R-Iowa) is a devoted champion of government accountability. Throughout his time in Congress, he has worked to empower whistleblowers to shine a light on fraud, inefficien- cies, or misconduct in government. Grassley, author of numerous whistleblower protection laws, is also founder and chairman of the bipartisan Senate Whistleblower Protection Caucus, which raises awareness about the need for adequate protections against retaliation for private sector and govern- ment employees who call attention to wrongdoing. Senator Ron Wyden | Oregon Senator Ron Wyden, (D-Oregon), one of the Senate’s foremost defenders of Americans’ rights and civil liberties, continues to fight back against government overreach and abuse. Wyden was elected to U.S. Senate in 1996, where he now serves as Ranking Member on the Senate Finance Committee, and as a senior member of the Senate Intelligence Committee. -
FINANCIAL COLLAPSE of ENRON—Part 4
THE FINANCIAL COLLAPSE OF ENRON—Part 4 HEARING BEFORE THE SUBCOMMITTEE ON OVERSIGHT AND INVESTIGATIONS OF THE COMMITTEE ON ENERGY AND COMMERCE HOUSE OF REPRESENTATIVES ONE HUNDRED SEVENTH CONGRESS SECOND SESSION MARCH 14, 2002 Serial No. 107–90 Printed for the use of the Committee on Energy and Commerce ( Available via the World Wide Web: http://www.access.gpo.gov/congress/house U.S. GOVERNMENT PRINTING OFFICE 78–506CC WASHINGTON : 2002 For sale by the Superintendent of Documents, U.S. Government Printing Office Internet: bookstore.gpo.gov Phone: toll free (866) 512–1800; DC area (202) 512–1800 Fax: (202) 512–2250 Mail: Stop SSOP, Washington, DC 20402–0001 VerDate Jun 13 2002 08:36 Jul 17, 2002 Jkt 010199 PO 00000 Frm 00001 Fmt 5011 Sfmt 5011 W:\DISC\78506 pfrm17 PsN: 78506 COMMITTEE ON ENERGY AND COMMERCE W.J. ‘‘BILLY’’ TAUZIN, Louisiana, Chairman MICHAEL BILIRAKIS, Florida JOHN D. DINGELL, Michigan JOE BARTON, Texas HENRY A. WAXMAN, California FRED UPTON, Michigan EDWARD J. MARKEY, Massachusetts CLIFF STEARNS, Florida RALPH M. HALL, Texas PAUL E. GILLMOR, Ohio RICK BOUCHER, Virginia JAMES C. GREENWOOD, Pennsylvania EDOLPHUS TOWNS, New York CHRISTOPHER COX, California FRANK PALLONE, Jr., New Jersey NATHAN DEAL, Georgia SHERROD BROWN, Ohio RICHARD BURR, North Carolina BART GORDON, Tennessee ED WHITFIELD, Kentucky PETER DEUTSCH, Florida GREG GANSKE, Iowa BOBBY L. RUSH, Illinois CHARLIE NORWOOD, Georgia ANNA G. ESHOO, California BARBARA CUBIN, Wyoming BART STUPAK, Michigan JOHN SHIMKUS, Illinois ELIOT L. ENGEL, New York HEATHER WILSON, New Mexico TOM SAWYER, Ohio JOHN B. SHADEGG, Arizona ALBERT R. WYNN, Maryland CHARLES ‘‘CHIP’’ PICKERING, Mississippi GENE GREEN, Texas VITO FOSSELLA, New York KAREN MCCARTHY, Missouri ROY BLUNT, Missouri TED STRICKLAND, Ohio TOM DAVIS, Virginia DIANA DEGETTE, Colorado ED BRYANT, Tennessee THOMAS M. -
Arthur Andersen Center for Financial Reporting Research Workshop
Arthur Andersen Center for Financial Reporting Research Workshop Friday, February 14, 2020 11:00 a.m. – 12:30 p.m. 4151 Grainger Hall The Effect of Financial Reporting for Restructuring on Firm Choice of Divestiture Form Diana Weng Doctoral Candidate University of Florida FACULTY Ph.D. STUDENTS W. Choi T. Ahn M. Covaleski J. Ariel-Rohr F. Gaertner I. Baek E. Griffith A. Carlson S. Laplante D. Christensen T. Linsmeier Z. King D. Lynch M. Liang E. Matsumura B. Osswald B. Mayhew C. Partridge T. Thomas L. Rousseau D. Wangerin D. Samuel T. Warfield M. Vernon J. Wild K. Walker K. Zehms E. Wheeler The Effect of Financial Reporting for Restructuring on Firm Choice of Divestiture Form Diana Lynn Weng Fisher School of Accounting Warrington College of Business University of Florida Gainesville, FL 32611 Office phone: (352) 273-0227 February 2020 ** Do not quote without the author’s permission ** I thank my dissertation committee members Bobby Carnes, Marcus Kirk, Mike Ryngaert, and Jenny Tucker (chair) for guidance; Elia Ferracuti, Jennifer Glenn, Patrick Kielty, Jeffery Piao, and Mark Zakota for comments; and Jonathan Urbine for his assistance with the SEC filings. The Effect of Financial Reporting for Restructuring on Firm Choice of Divestiture Form ABSTRACT I examine whether financial reporting for restructuring influences managers’ choice of divestiture form. Firms have three major divestiture form options: a firm can sell a unit to another firm in a sell-off; sell a percentage of shares in a unit to new shareholders in an equity carve-out; or separate a unit and pro-ratably distribute the new unit’s shares to existing shareholders in a spin-off.