Ethical Issues In Enron

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1.1. The ENRON scandal The Enron scandal came to light in 2001 and led to the subsequent bankruptcy of ENRON. According to the economist (2002), this scandal pinned the blame for the problems of Enron on the members of the board of Directors, the senior managers of Enron, the auditors of Enron, the bankers of Enron and the Bush administration among other players. The Economist (2002) further stated that “the only missing ingredient on the scandal so far is sex”. The Enron showed the need to reform the accounting and Corporate Governance environment in the USA. It also highlighted loopholes of leadership and ethical quality in the business environment of USA. The key issues which caused the problems at Enron also included the following; • Conflicts…show more content…
Key challenges of Leadership and corporate governance implementation in Africa The key challenges of Leadership and corporate governance implementation in Africa have been attributed to factors like: • Corruption according to Ayandele and Emmanuel (2013), Costa (2005) & McGregor (2005) • Weak regulatory mechanisms according to Bakre (2007) & Yinusa and Adeoye (2006) • Falling standards of education according to Adekoya (2011), El-Rufai (2003) & Bell-Imam (2004) • Widespread poverty caused high unemployment according to Adekoya (2011), Visser (2006), Komolafe (2008) & Akosile (2007) • Lack of managerial training and development according to Ayandele and Emmanuel (2013) & Elebute (2000). 1.3. Leadership and Corporate Governance issues in…show more content…
She further indicated that there is a lot that needs to be done in the form of formulation of new regulatory framework and tightening of the screws on the current ones. She futher concluded that the current corporate governance is marred with weak monitoring mechanisms and needs to be thoroughly worked on by all stakeholders particularly the regulatory bodies of the Swaziland. Her study also cconcluded that to larger extent public listed companies adhere to the tenets of corporate governance codes as per the dictates of the King III save for a few but significant matters that need to be addressed. These cover the following, the question of the chairman of the board of directors for some companies studied being nominated by the shareholder as per shareholder agreement, issue of non-independent board of directors as well as non-independent audit and remuneration committees. Apart from these issues, one can safely conclude that the public listed companies have complied with the codes of corporate
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