The collapse of Enron Essay Example for Free

The collapse of Enron Essay The collapse of Enron seems to be rooted in a combination of the failure of top leadership, a corporate culture that supported unethical behavior, and the complicity of the investment banking community. In the aftermath of Enron’s bankruptcy filing, numerous Enron executives were charged with criminal acts, including fraud, money laundering, and insider trading. Ben Glisan, Enron’s former treasurer, was charged with two-dozen counts of money laundering, fraud, and conspiracy. During the plea negotiations, Glisan described Enron as a â€Å"house of cards. † Andrew Fastow, Jeff Skilling, and Ken Lay are among the most notable top-level executives implicated in the collapse of Enron’s â€Å"house of cards. † Andrew Fastow, former Enron chief financial officer (CFO), faced 98 counts of money laundering, fraud, and conspiracy in connection with the improper partnerships he ran, which included a Brazilian power plant project and a Nigerian power plant project that was aided by Merrill Lynch, an investment banking firm. 2. How did the top leadership at Enron undermine the foundation values of the Enron Code of Ethics? Enron’s ethics code was based on respect, integrity, communication, and excellence. Kenneth Lay, former chairman and (CEO) of Enron Corp. , once quoted as saying: â€Å"I was fully exposed to not only legal behavior but moral and ethical behavior and what that means from the standpoint of leading organizations and people. † In an introductory statement to the revised Enron Code of Ethics issued in July 2000, Lay wrote: â€Å"As officers and employees of Enron Corp. Its subsidiaries, and its affiliated companies, we are responsible for conducting the business affairs of the companies in accordance with all applicable laws and in a moral and honest manner. † Lay went on to indicate that the 64-page Enron Code of Ethics reflected policies approved by the company’s board of directors and that the company, which enjoyed a reputation for being fair and honest, was highly respected. Enron’s ethics code also specified that â€Å"An employee shall not conduct himself or herself in a manner which directly or indirectly would be detrimental to the best interests of the Company or in a manner which would  bring to the employee financial gain separately derived as a direct consequence of his or her employment with the Company. † 3. How did Enron’s corporate culture promote unethical decisions and actions? Enron has been described as having a culture of arrogance that led people to believe that they could handle increasingly greater risk without encountering any danger. According to Sherron Watkins, â€Å"Enron’s unspoken message was, ‘Make the numbers, make the numbers, make the numbers—if you steal, if you cheat, just don’t get caught. If you do, beg for a second chance, and you’ll get one. ’† Enron’s corporate culture did little to promote the values of respect and integrity. These values were undermined through the company’s emphasis on decentralization, its employee performance appraisals, and its compensation program. Each Enron division and business unit was kept separate from the others, and as a result very few people in the organization had a â€Å"big picture† perspective of the company’s operations. Accompanying this emphasis on decentralization were insufficient operational and financial controls as well as â€Å"a distracted, hands-off chairman, a compliant board of directors, and an impotent staff of accountants, auditors, and lawyers. † Jeff Skilling implemented a very rigorous and threatening performance evaluation process for all Enron employees. Known as â€Å"rank and yank,† the annual process utilized peer evaluations, and each of the company’s divisions was arbitrarily forced to fire the lowest ranking one-fifth of its employees. Employees frequently ranked their peers lower in order to enhance their own positions in the company. Enron’s compensation plan â€Å"seemed oriented toward enriching executives rather than generating profits for shareholders† and encouraged people to break rules and inflate the value of contracts even though no actual cash was generated. Enron’s bonus program encouraged the use of non-standard accounting practices and the inflated valuation of deals on the company’s books. Indeed, deal inflation became widespread within the company as partnerships were created solely to hide losses and avoid the consequences of owning up to problems. (p29-31) Weiss, Joseph W. (2009). Business Ethics: A Stakeholders Issues Management Approach

El Nino :: essays papers

El Nino This morning, before writing this essay, I spent a considerable amount of time watering my wilting garden. Meanwhile, the New York Yankees have been rained out for their third consecutive game. And out in California? Rain, no rain, rain, no rain... Why are we suffering such severe weather this summer? In case you have not heard, we are experiencing a weather phenomenon called El Nino. What is El Nino, and How Long Will This Last? According to Michael McPhaden, director of the Tropical Atmosphere Ocean Array, an El Nino is born when west-blowing Pacific trade winds relax or reverse. Without the wind at its back, seawater that typically piles up on the jagged western edge of the Pacific -- around Indonesia, the Philippines and Australia -- slides back toward the Americas. The sliding water moves in what scientists call Kelvin waves. "It pushes the cold water down. That causes the initial warming," said McPhaden. At the same time, the Pacific reacts to the lost wind by building another series of waves under water. Called , they roll west toward Indonesia, the Philippines and Australia. Eventually, the series of waves strikes the coasts of those countries. Then, it reverses and heads back toward South America, traveling along the equator. "As it passes," McPhaden said, "it leaves cold water closer to the surface." El Nino normally occurs around Christmas and usually last for a few weeks to a few months. Sometimes an extremely warm event can develop that last for much longer time periods. A strong El Nino developed in 1991 and lasted until 1995. We are apparently experiencing one of these stronger El Ninos, as this one has lasted for nearly six months . But how long will this last? And then what? The Onset of La Nina After an El Nino event, weather conditions usually return to normal. However, in some years the trade winds can become extremely strong and an abnormal accumulation of cold water can occur in the central and eastern Pacific. This event is called La Nina. Where El Nino refers to a body of unusually warm water astride the equator by South America, La Nina describes a sea that's abnormally cool. Two independent computer models that forecast El Nino see on the horizon a pronounced cooling of the same area of the Pacific. Sometimes, the cold water is just enough to return ocean temperatures to normal. Not always. "Sometimes, it overshoots," McPhaden said. "That would bring a La Nina after El Nino." "The models say . . . there will be a cold effect sometime next year --

Pros and Cons of Genetically Modified Foods Essay

Our ancestors first cultivated plants some ten thousand years ago. They domesticated animals later and then selectively bred both plants and animals to meet various requirements for human food. Humans discovered natural biological processes such as fermentation of fruits and grains to make wine and beer, and yeast for baking bread. Manipulation of foods is not a new story, therefore. The latest agricultural discovery uses genetic engineering technology to modify foods. Farmers and plant breeders have been changing crop plants to improve characteristics such as size, resistance to disease and taste. Plants which grow well, have a higher yield or taste better are selected and bred from. This is still the most widely used technique for developing new varieties of a crop, and is limited by natural barriers which stop different species of organisms from breeding with each other. Genetic modification is very different to these traditional plant breeding techniques. Genetic modification is the insertion of DNA from one organism to another, usually by molecular technologies. Genetically Modified Foods (GMF) are animals or plants that have had genetic modification. This changes the characteristics of the organism, or the way it grows and develops. Jim Maryanski from the U.S. Food and Drug Administration, had the following to say in an interview published on the FDA’s website. “There are hundreds of new plant varieties introduced every year in the United States, and all have been genetically modified through traditional plant breeding techniques–such as cross-fertilization of selected plants–to produce desired traits.” (Robin)Current and future GM products include:a)Food that can deliver vaccines – bananas that produce hepatitis B vaccineb)More nutritious foods – rice with increased iron and vitaminsc)Faster growing fish, fruit and nut treesd)Plants producing new plasticsIn so many respects, genetic modification is perfect for today’s society. It would help agriculturalists overcome all headaches associated with growing large crops, and basically tailor the food growth industry to mass consumption by the general population. The famous frost-resistant tomato example is perfect in illustrating this point. With a tomato that  resists frost, the season for growing them would be longer and therefore a farmer would be able to produce more tomatoes in one year than they were able to do in the past. Gene technology not only gives us the potential to select the exact characteristics we want in an organism, but it also enables us to cross species barriers. For example, we can take an insecticide-producing gene from a bacterium and insert it into a plant, making the plant resistant to insect attack. This new-found ability to cross species barriers is what makes gene technology such a powerful tool. Producing enough food for the world’s population without using up all the available land is an enormous challenge. One solution is to develop crops that yield more with fewer inputs; that are more resistant to diseases; that spoil less during storage and transport; that contain more useful nutrients; and that can grow in agricultural land that has been degraded. Gene technology gives us the potential to do this. Genetically modified foods have been available since the 1990s. The principal ingredients of GM foods currently available are derived from genetically modified soybean, maize and canola. The first commercially grown genetically modified food crop was a tomato created by Calgene called the FlavrSavr. Calgene submitted it to the U.S. Food and Drug Administration (FDA) for assessment in 1992; following the FDA’s determination that the FlavrSavr was, in fact, a tomato, did not constitute a health hazard, and did not need to be labeled to indicate it was genetically modified, Calgene released it into the market in 1994, where it met with little public comment. Considered to have a poor flavor, it never sold well and was off the market by 1997. However, it had improved solids contents which made it an attractive new variety for canned tomatoes. Transgenic crops are grown commercially or in field trials in over 40 countries and on 6 continents. In 2000, about 109.2 million acres (442,000 km ²) were planted with transgenic crops, the principal ones being herbicide- and insecticide-resistant soybeans, corn, cotton, and canola. Other crops grown commercially or field-tested are a sweet potato resistant to a US strain of a virus that affects one out of the more than 89 different varieties of sweet potato grown in Africa, rice with increased iron and  vitamins such as golden rice, and a variety of plants able to survive extreme weather. Between 1996 and 2001, the total surface area of land cultivated with GMOs had increased by a factor of 30, from 17,000 km ² (4.2 million acres) to 520,000 km ² (128 million acres). The value for 2002 was 145 million acres (587,000 km ²) and for 2003 was 167 million acres (676,000 km ²). Soybean crop represented 63% of total surface in 2001, maize 19%, cotton 13% and canola 5%. In 2004, the value was about 200 million acres (809,000 km ²) of which 2/3 were in the United States. In particular, Bt corn is widely grown, as are soybeans genetically designed to tolerate glyphosate herbicides. Future applications of GMOs include bananas that produce human vaccines against infectious diseases such as Hepatitis B, fish that mature more quickly, fruit and nut trees that yield years earlier, and plants that produce new plastics with unique properties. The next decade will see exponential progress in GM product development as researchers gain increasing and unprecedented access to genomic resources that are applicable to organisms beyond the scope of individual projects. Biologist Stephen Nottingham explains the risks of GMF:“Experimental trials with transgenic organisms are usually conducted strict regulations to minimize the potential spread of genetic materialÂ…Even given these regulations, however, no field trial can be said to be 100% secure. This was illustrated when flooding struck the American Midwest in July 1993 and an entire field of experimental insect-resistant maize was swept away in Iowa. Â…once released accidentally into the environment, plant material may prove difficult to recover. (Bragi)Unique ecological risks have been associated with virus-resistant transgenic crop plantsÂ…leaving crops more vulnerable to virus attack and risking the spread of virus susceptibility to other plants. Genetically modified foods are unlikely to present direct risks to human health. There are two main areas of concern:a)The possibility of allergic reactions to genetically modified foods, andb)The possibility that bacteria living in the human gut may acquire resistance to antibiotics from marker  genes present in transgenic plants. Proponents claim that a genetically-modified potato is as safe as one modified the old-fashioned way, through generations of selective breeding; biotechnology just gets the job done more quickly. Critics are concerned that mixing together genetic material from different species might produce unexpected allergic reactions in the person who eats or drinks it. For instance, if an individual consumer who is allergic to broccoli eats a banana that just happens to have a little broccoli DNA under the peel, that person might get sick. Some studies on animals indicate that consuming genetically-modified foods may cause allergic responses, compromise immune systems and inhibit organ growth, although no proven cases of widespread reactions have been definitively documented. Opponents of biotech foods want other questions answered, as well. Will re-engineering a plant or animal to serve a specific end, such as improving taste, decrease its nutritional value? Will consuming genetically-modified food products make a person more resistant to antibiotics, which are widely used to treat bacterial infections? Does consuming milk or meat from livestock that has been injected with growth hormones (a form of biotechnology that is different from genetic modification) subject consumers to early puberty, cancer, and other ailments?Since neither side has been able to provide definitive answers, the jury is still out on food safety; after all, genetic technology itself is barely decades old. So one can condense the issue into a single question: should we move forward with new technologies that might help provide higher crop yields, new and interesting types of food products, and more profits for the companies that own the technology; or play it safe and wait until we better understand the health and environmental consequences of manipulating life forms that took generations to develop?Multinational Corporations benefit because GMF can be very profitable. GMF have taken hold quickly because multinational corporations with the resources to make large financial investments in research and development can profit directly. Multinational companies can spread out the benefit and profit to many branches of their businesses. Many such corporations combine the following: an agrochemical company, a seed  company, a pharmaceutical company, a food processing company and sometimes businesses involved with veterinary products. Developments in one part of the corporation can be used t o sell products in another branch. Farmers benefit in the short term because they can grow and sell more crops with fewer problems due to weeds, pests, fungi or frost. The genetically modified seed is designed to resist these traditional enemies. Food processing companies benefit from a ready supply of raw food ingredients designed for specific processing needs. Genetically modified tomatoes and potatoes, for instance, have higher solid contents and yield more sauces and French fries. These foods take longer to ripen and rot. Thus less food is spoiled and more gets processed. Supermarkets benefit for the same reasons. The fresh produce lasts longer on the shelves and is more profitable. Consumers, to date, haven’t benefited. GMF have been developed for the convenience of the producer and processor. Yet they cost more to produce and the costs get passed along to the consumer. Eventually there will be some kind of designer novelty foods for shoppers to try. Nottingham adds that there are many other concerns including ethical questions involving animal welfare, whether DNA is actual life, and intellectual property rights and genetic resources from the Third World. (Bragi)The world’s poorest nations account for around 95.7% of the world’s genetic resources. Traditional farming practices involve farmers retaining seeds, from the harvest of one year’s crop, for planting in the following year. This practice saves money on buying seed and in itself represents a continuous selection for yield and resistance to pests and diseases. However, with genetically modified seed, royalties are payable to the companies holding the patent for the seed. Under world trade agreement rulings, farmers have to make substantial royalty payments to multinational companies if they keep seed for replanting, even if the crop happens to be native to their particular country. Genetic engineering is a valuable new technology that can develop more plentiful and nutritious foods, with great potential benefits for humanity and the environment, and this new scientific discovery needs to be implemented as quickly as possible for humanitarian reasons. As with every new scientific technology, harmful side effects of genetic engineering are inevitable and great care should be taken in its implementation, including carefully controlled long-term tests on human health and environmental impacts. All genetically engineered foods have been thoroughly tested and demonstrated to be safe before they are released into the marketplace. However, this testing is typically conducted only on rats and other animals, by the companies involved. Very little of this research has been reviewed by independent scientists and then published in scientific journals. Genetically engineered foods are usually â€Å"substantially equivalent† to other foods, with no increased risk to human health, and no need for the lengthy and expensive human testing demanded of, for example, new food additives. However, the unpredictable disruptions in normal DNA functioning caused by genetic engineering can produce unanticipated and unknown side effects for human health, including unknown and unpredictable toxins and allergens, and these possibilities can only be definitively assessed through human testing. Genetic engineering is a scientific and technological process, and its evaluation and governmental regulation should be based on purely scientific and objective criteria. To have a purely scientific evaluation of genetically engineered foods, we need more science, especially human studies and environmental studies. Moreover, purely scientific assessment of genetic engineering ignores the fact that, for many people, food has cultural, ethical and religious dimensions that must also be considered. Alan McHughen, author of Pandora’s Picnic Basket: The Potential and Hazards of Genetically Modified Foods, in the introduction he states:†Make no mistake: I am in favor of an orderly and appropriately regulated introduction of some GMOs into the environment and marketplace, and I  adamantly oppose others. There are good reasons to ban certain products of genetic technology, and good reasons to allow, with management, certain others; some may require no extraordinary regulation at all. If your opinion differs from mine after reading this book, I hope you will be able to justify, if only to yourself, why we disagree. My philosophy is to be skeptical, be critical, even cynical of claims by business interests, government agencies, and activist groups. But also keep an open mind and then decide for yourself.† (Internet 7)ThereÂ’s no doubt that the GM food supply should be closely monitored and regulated, but that doesnÂ’t mean it should all be banned. I believe that genetic engineering of plants, animals, and humans has much to offer as long as we are aware of potential benefits and side effects. And thatÂ’s true even for more traditional methods of farming, animal husbandry, and medicine. Work Sited: 1.Cummings, Michael R., and Williams S. Klug. Concepts of Genetics. New Delhi: Pearson Education, 2004. 2.Dubey, R.C. A Textbook of Biotechnology. New Delhi: S. Chand, 20063.Kumar, H.D. Modern Concepts of Biotechnology. New Delhi: Vikash Publishing House, 20034.Purohit, S. Agricultural Biotechnology. India: Agrobios, 20055.Purohit, S. Biotechnology: Fundamental and Applications. India: Agrobios, 2004Internet Reference:1.Bragi, David. “Food Savior Or Frankenfood? The Debate Over Genetically Modified Foods”. http://www.sfgate.com/cgi-bin/article.cgi?f=/gate/archive/2001/06/25/healthwatch.DTL2.Robbin, Adria. “What Are We Eating?” http://serendip.brynmawr.edu/biology/b103/f00/web1/robbin.html3.Schultz, Norman. http://www.beyondintractability.org/essay/fact_finding_limits/4.Wikipedia Online Encyclopedia. http://www.wikipedia.org/wiki/genetic_engineering5.Wikipedia Online Encyclopedia. http://www.wikipedia.org/wiki/genetically_modified_food6.“Genetic Engineering: The Controversy”. http://www.genetic-id.com/prosncons/index.htm7.http://www.foodmuseum.com/issues.html

Game Theory - 1654 Words

PS II 2013 Problem Set II 1. Reading newspapers: A survey on student behavior in some major B-schools in India asked a randomly selected group of 240 students on the number of hours a week he/she reads a newspaper. The sample mean was 4.1 and standard deviation 3. We can assume that the underlying distribution (of number of hrs reading newspaper) is approximately normal. a) What will be a 99% confidence interval of the population mean (number of hours a B-school student read newspapers/week)? b) Suppose you perform a similar survey at IIMA with 24 randomly selected students; the sample mean and the sample standard deviation were 4.5 and 2.8 respectively. What will be a 99% confidence interval of the population mean†¦show more content†¦Similarly, the number of defectives among the ten televisions of brand B is 2M. In order to test the null hypothesis H0: M = 2 against the alternative Ha: M gt; 2, the following procedure is adopted: (i) From the six televisions of brand A, draw a random sample of size two without replacement. (ii) From the ten televisions of brand B, draw a random sample of size two without replacement. (iii) Reject if and only if both the televisions in at least one of the two samples are defectives. a) What is the probability of type I error for the above test procedure? b) Find the probability of type II error for this procedure when M equals 3. 5. Anorexia in teenage girls: Anorexia is an eating disorder that can cause a person to be dangerously underweight. A recent study analysed the effect of cognitive behavioural therapy in aiding weight gain on 29 teenage girls affected with Anorexia. Each girl’s weight was measured before and after the therapy and the weight change (positive: weight gain; negative: weight loss) was noted. The weight changes for the 29 girls had a sample mean of = 3 kilos and a standard deviation of s = 7.32 kilos. Let  µ be the population mean weight change. It can be assumed that weight change follow a normal distribution in the population. a) What would be a reasonable set of hypotheses (null and alternative) for this problem? b) How many standard errors separate the sample average weight change of the 29 girls and the null valueShow MoreRelatedThe Theory Of Game Theory1616 Words   |  7 PagesGame theory is one to more complexed topics but reveals a clear understanding from different scholars. Don Ross explained that game theory is the study that interacts with the different choices of economics agents which bring forth many different outcomes with the point to the preferences of those agents, where the outcomes in question might have been intended by none of the agents (Ross, 2016). 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