Resisting Corporate Corruption

Taking a unique approach to business ethics unlike the typical focus on conceptual/legal frameworks, this book features 25 case studies that cover a full range of business practices, controls, and ethics issues. The new edition is fully updated with new case studies from the recent financial crisis, comparing it with Enron's crossing of various ethical lines. Interpretive essays explore financial control systems and lessons learned from specific case studies and circumstances. Readers will find a practical toolkit they can use to identify ethics issues and tackle problems effectively within corporations.

Acknowledgements viiPreface ixNote to Faculty:How to Use this Book xviiCase Study 1 Enron Oil Trading (A): Untimely Problemsfrom Valhalla (A) 5Essay 1 How to do an Ethics Case Study: Key Stepsin Tactical Planning 21Case Study 2 Enron Oil Trading (B): The Future ofEnron InternalAudit 37Case Study 3 Enron Oil Trading (C): An Opening forEnronAudit? 49Case Study 4 Enter Mark-to-Market (A): ExitAccountingIntegrity? 53Case Study 5 Enter Mark-to-Market (B): Accounting &theAggressive Client 71Essay 2 NecessaryAmmunition-- The EconomicRationale for Financial Control 81Case Study 6 Enter Mark-to-Market (C): The Disease Spreadsto Enron Clean Fuels 107Case Study 7 Adjusting the Forward Curve in the Back Room(A) 115Case Study 8 Enron's SPE's:AVehicle tooFar? 127Case Study 9 Court Date Coming in California 149Case Study 10 Jeff Skilling and LJM (A): The "Shootthe Moon" Meeting 169Case Study 11 New Counsel forAndy Fastow (A) 189Case Study 12 Nowhere to Go with "The Probability ofRuin" 205Case Study 13 Lay Back ... and Say What? 227Case Study 14 "Whistleblowing" beforeimplodingin Accounting Scandals 249Essay 3 Legacy and Lessons of Enron: Forerunner of theFinancial Crisis? 271Essay 4 Resisting Corporate Corruption: Tactical Lessonsfrom the Enron Cases 279Essay 5 Underappreciated Origins of the FinancialCrisis:APersonal Memoir 289Case Study 1 Should Countrywide Join The Subprime Mortgage"Race to the Bottom?" 311Case Study 2 Seeking a Sustainable Business Model atGoldman Sachs 337Case Study 3 Juggling Public Policy, Politics andProfits at Fannie Mae (A) 357Case Study 4 Sub-Prime Heading South at BearStearnsAsset Management 383Case Study 5 Ratings Integrity vs. Revenues atMoody's Investors Service 409Case Study 6 Juggling Public Policy, Politics andProfits at Fannie Mae (B) 437Case Study 7 Admission of MaterialOmission? Citibank's SIVs and Sub-PrimeExposure 461Case Study 8 Facing Reputational Risk onGoldman'sABACUS 2007-AC1 487Case Study 9 Time to "Drop the Hammer"onAIG's Controls? 505Case Study 10 Write to Rubin? - Pressure onUnderwriting Standards at Citigroup 533Case Study 11 Wean Lehman Brothers off "Repo105"? 559Case Study 12 Time to Report Moody's to theSEC? 575Case Study 13 Take CitiMortgage to the Feds? 595Essay 6 Chronic Crises, Systematic Breakdowns, EmergingResistance and The Implications for Teaching BusinessEthics 613A Note on Sources 629Index