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Article

Abstract

Enron an American energy corporation was involved in one of the biggest cases of corporate fraud of the 21st century. In recent times, corporate scandals have been a major issue of public policy. These scandals have brought into question current legislation and the integrity of businesses. The purpose of my thesis is to portray corporate environments that would be prevalent for fraud and how to prevent it. Establishing a strong ethical business culture is the greatest factor to preventing corporate fraud. Business culture is a mechanism that aligns values of the company with organizational processes and creates a natural selection process. This natural selection process is where people who don’t share the same values are eliminated. I will be using the failures of Enron as proof that an organization’s culture is the greatest factor to preventing corporate fraud. Enron’s poor leadership created an unethical organizational culture. Leaders are the role models and they form the basis for what is appropriate and inappropriate behavior in an organization.

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