FINAL BLOG: ENRON

THE FINANCIAL COLLAPSE DRAMA OF ENRON

BACKGROUND:

Enron Corporation was an American energy company based in Houston, Texas, United States. Before the collapse in late 2001, Enron employed approximately 21,000 employees and is one of the world's leading companies in the field of electricity, natural gas, pulp and paper, and communications. Enron claimed income in 2000 totaled $ 101 billion. Fortune named Enron "America's Most Innovative Company" for six consecutive years.   

                                                                          

PROBLEM:

One factor is the cause of destruction of Enron is that earnings management game is very detrimental to the company. In this case Enron commit fraud in the calculation of earnings, Enron's mark up of U.S. $ 600 million and hide its debt for U.S. $ 1.2 Billion. This makes the Enron went bankrupt because it could not fulfill its debts so many injured party.

THEORY:

Code of Ethics is a pattern of rules, procedures, signs, and ethical guidelines in doing an activity or job. The code of conduct is a pattern of rules or procedures to guide behavior. The purpose of a professional code of ethics in order to provide the best possible services to users or customers. The existence of a code of ethics to protect act unprofessionally.

CONCLUSION:

Enron Corporation is due to manipulation of the financial statements with a record a profit when the company suffered a loss. Manipulation of profits due to the company's desire that the stock remains attractive to investors. This is one example of a violation of professional ethics Auditor. selfishness of one party against another party, in this case the parties that have benefited from the fraudulent financial statements to those who have been deceived. For that professional ethics should be made ​​to support healthy practices are free from fraud. Code of ethics regulate its members and explain what is good and bad and which ones can and cannot do as members of the profession well in touch with colleagues, subscriptions, community and staff.

Black Gold

            Tree huggers have probably heard about  but many aren't familiar with it and even more don't quite know what fair trade means, or why it's necessary. Despite the fact that a coffee crisis has been financially devastating coffee growers around the world, even as western corporations make a lot of money from coffee sales, the problem still doesn't get much coverage in the mainstream media. Black gold is hit the theaters. This documentary puts the paradoxes of coffee trade under a glaring, illuminating light. The film juxtaposes how the coffee drinkers of the western world gladly pay $3-$5 for our high-priced espresso drinks, fattening the bottom lines of our corporations while the crushingly poor farmers producing those yummy espresso beans barely make ends meet.

The hero of the film is Tadesse Meskela, an Ethiopian man who travels all over the world, trying to get the farmers he represents a better price for their coffee. We see him at trade shows, trying to find new buyers by giving out samples. We see him at the Ethiopian coffee auction, pointing out which big corporations are represented by who. And we see him talking to, getting opinions from, and participating in the decision-making for coffee co-ops in Ethiopia.

         The website for the film includes suggestions on how to respond to the issues raised and links to various relevant campaign groups. Film makers Nick and Marc Francis explain that we wanted the audience to see that the current international trading system is enslaving millions of people and is urgently in need of radical reform. We wanted people to wake up and smell the coffee. 

Black gold  is an eye-opening documentary about the coffee industry from the growing of the beans to the espresso that gets us going every morning. Showing the real story behind the world’s most popular drink the film follows Tadesse Meskela manager of a coffee co-operative in southern Ethiopia, as he fights to get a fair price for the work of the 74,000 farmers he represents. As well as providing an insight into the way of life of these coffee farmers and their families, Black Gold also connects them to our own experiences, and examines the wider implications of current trade systems by looking behind the scenes at the 2003 Cancun World Trade Organization talks.