Business Law and Ethics: Enron Fraud Scandal and Sabane-Oxley Act of 2002

Business Law and
Ethics

Table of Contents
INDIVIDUAL REPORT.................................................................................................................2
Introduction............................................................................................................................2
Discuss this case in relation to ethical corporate governance and the Sabance-Oxley Act of
2002........................................................................................................................................2
Conclusion..............................................................................................................................5
REFERENCES................................................................................................................................6

INDIVIDUAL REPORT
Introduction
Business law and ethics are important part of an organisation as they ensure that activities
will conduct in proper manner as well as help in gaining desired outcomes (McLean, 2017). This
report is based on Enron company and it will going to focus toward Fraud Scandal where
Sabane-Oxley Act 2002 will be also considered in it.
Discuss this case in relation to ethical corporate governance and the Sabance-Oxley Act of 2002
Enron corporation case scenario – Ending of 2001, it was determine that Enron's
company financial condition was reported sustained through an institutionalised systemic in
which major frauds identified related to accounting.
Ethical corporate governance – It is the procedure which assist in ensuring that any
entity working within specific manner that result in balance within economical and factors will
maintain. Along with this, any corporate sector organisation have to take numerous decisions but
at same time it is important to ensure that they should not create issues for public or any other
sector (Thompson, 2017). Furthermore, ethical corporate governance express that when an
organisation utilise existing resources will not result in creating issues for general public. Ethical
corporate governance is important because it simply mean that corporate governance has its wide
importance within accomplishment of desired targets. At same time it is important that business
activity must have yo be conducted within ethical way but in case organisation get fail in
particular area then numerous penalties can impose.
Sabane-Oxley Act of 2002 – In given scenario, investor want to invest their money
within commercial activity so that appropriate results can be gained. Within same duration, there
are numerous business firm that presents fraudulent data in front of public and result in creating
wide issues. Thus, for controlling all the activities in appropriate manner, Sabane-Oxley Act,
2000 commenced. This act ensure that no organisation can present face data or information in-
front of stakeholders. Moreover, within an organisation these are several accounting information
in which it is important to present that within fair and appropriate manner. In this, it is important
according to the act proper audit has to be for account which is prepared. Main purpose of
conducting audit is to ensure that each and every information has been prepared within fair
manner (Cortez, 2018). Along with this, main purpose behind commencing this act is to make