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_Acc100_SOX - Pride goes before destruction 1 The...

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Pride goes before destruction 1 The Sarbanes-Oxley Act; Lessons of ENRON Jessica J. Clifton ACC 100 – Accounting I David Heier March 14, 2011 Abstract
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Pride goes before destruction 2 Power of any kind can be a dangerous blessing. Individuals and corporations need power to ensure their own survival and promote their own welfare and the welfare of those with who are in their sphere of influence. Absolute power destroys absolutely; when we employ the same energy that enables us to do good to do all sorts of evil. At first Enron was the beloved of the stock world #7 on the Fortune 500 in 2001. Then in 2001 the love story was revealed to be a story of political intrigue and bloody conflict; closing in 2001 at .40 a share. Powerful human emotions like lust, pride and greed come into play as the leaders of Enron struggle to overcome each other. The story ends not without a romantic reconciliation but with the loss of a life, many dreams and an empire. (Lewis, E. 2007) We can learn a good deal from the collapse of one of Americas’ largest companies. The most important point is to recognize the limitations of legal solutions to the problems that made Enron possible. There is a tendency, to assume that we can use legislation to force people to act
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Pride goes before destruction 3 morally. This impulse has inspired many of the reforms that have been proposed in the wake of Enron’s devastation. The problem, as legal scholar William Stuntz has pointed out, is that these kinds of reforms often have effects precisely the opposite of what they intend. Prohibition is the most obvious example, and there are many others. In the wake of Enron's spectacular fall and the scandal that followed, we know that Enron wasn't as different from other American businesses as we'd been led to believe. Indeed, Enron's trajectory fits a very old pattern. All too often, the
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