ENRON Corruption Scandal

Video : ENRON Corruption Scandal

The Enron scandal, revealed in October 2001, eventually led to the bankruptcy of the Enron Corporation, an American energy company based in Houston, Texas, and the de facto dissolution of Arthur Andersen, which was one of the five largest audit and accountancy partnerships in the world.

Causes of downfall

Enron's complex financial statements were confusing to shareholders and analysts. In addition, its complex business model and unethical practices required that the company use accounting limitations to misrepresent earnings and modify the balance sheet to indicate favorable performance.

Before its scandal, Enron was lauded for its sophisticated financial risk management tools. Risk management was crucial to Enron not only because of its regulatory environment, but also because of its business plan. Enron established long-term fixed commitments which needed to be hedged to prepare for the invariable fluctuation of future energy prices. Enron's bankruptcy downfall was attributed to its reckless use of derivatives and special purpose entities. By hedging its risks with special purpose entities which it owned, Enron retained the risks associated with the transactions. This arrangement had Enron implementing hedges with itself.

The Effect

Arthur Andersen was charged with and found guilty of obstruction of justice for shredding the thousands of documents and deleting e-mails and company files that tied the firm to its audit of Enron. Although only a small number of Arthur Andersen's employees were involved with the scandal, the firm was effectively put out of business; the SEC is not allowed to accept audits from convicted felons. The company surrendered its CPA license on August 31, 2002, and 85,000 employees lost their jobs. The conviction was later overturned by the U.S. Supreme Court due to the jury not being properly instructed on the charge against Andersen. The Supreme Court ruling theoretically left Andersen free to resume operations. However, the damage to the Andersen name has been so great that it has not returned as a viable business even on a limited scale.

Enron's shareholders lost $74 billion in the four years before the company's bankruptcy ($40 to $45 billion was attributed to fraud). As Enron had nearly $67 billion that it owed creditors, employees and shareholders received limited, if any, assistance aside from severance from Enron. To pay its creditors, Enron held auctions to sell assets including art, photographs, logo signs, and its pipelines.

In May 2004, more than 20,000 of Enron's former employees won a suit of $85 million for compensation of $2 billion that was lost from their pensions. From the settlement, the employees each received about $3,100. The next year, investors received another settlement from several banks of $4.2 billion. In September 2008, a $7.2-billion settlement from a $40-billion lawsuit, was reached on behalf of the shareholders. 

Conclusion

This scandal mostly were caused by the reckless human unethical behavior leadership. Leader help to establish the culture of an organization, and they set the example that others follow. Other employees in a business often take their cue from business leader, and if those leaders do not behave in ethical manner, they might not either. It is not what leaders say that matters, but what they do. From the cases above, Enron had a code of ethics that Kenneth Lay himself often referred to, but Lay's own action to enrich family member spoke louder than any words.

Environmental Issues

Video : The Haze Issue in Singapore

 Small and large-scale farmers in Riau province, Sumatra, have been blamed for the recent choking smoke smothering Singapore and parts of Malaysia. But scientists in Indonesia have added a third category of 'mid-level entrepreneurs'. These entrepreneurs buy unregulated access to land for oil palm and clear it by burning, seemingly unrestrained by government.

The Implications

Rajiv Biswas, Asia-Pacific chief economist at IHS Global Insight, warned that if the haze situation deteriorates for a prolonged period of time, the Singaporean economy will be negatively impacted.
"Singapore has been highly successful in creating its brand as a top class tourism destination, so it is particularly galling that these efforts are being eroded by the slash and burn techniques being used in Indonesia," said Biswas.
According to Biswas, tourism is a key contributor to the Singapore economy and generates 4 percent of gross domestic product growth directly, with around 14.4 million tourist visitors and S$23 billion ($18 billion) in tourism-related earnings in 2012.
"If the number of tourist visitors fall sharply for several months, this will hurt Singapore's GDP numbers for the third quarter of 2013, at a time when the manufacturing sector has already been adversely impacted by weak orders," he said.

Singapore 'has learnt 5 key lessons from haze crisis': Ng Eng Hen

Singapore will be even better prepared for the haze if it returns with a vengeance, said Defence Minister Ng Eng Hen, pointing to five key lessons learnt from the latest episode.
At a press conference last Friday to assess the recent haze crisis, he added that the authorities will continue to monitor the situation and fine-tune contingency plans.
Dr Ng, who heads an inter-ministerial committee to tackle the haze problem, said: "I think we are better prepared, both our people and agencies. If the haze does return we are confident that Singaporeans will take it in our stride."

1) Haze is a long-term issue
2) Better early warning system
3) Information management is key
4) The Singapore System is robust
5) Singaporeans are resilient

Conclusion

Environmental pollution issue often appear as a worldwide problem in a row with the advancement of the human life. This also related to the ethical issue which is have been arise when environmental regulations in host nations are inferior to those in the home nation. Many developed nation have substantial regulations governing the emission of pollutant, the dumping of toxic chemicals, the use of toxic materials in the workplace and so on. Those regulation are often lacking in developing nations, and according to critics, the result can be higher level of pollution from the operation of multinationals than would be allowed at home. From the above example environmental issue, it is caused by the other country but the consequences are most badly effects toward Singapore. So, it can be concluded that the root cause of this problem are from unethical behavior in organizational culture.

TAUFAN SANDY

Taufan Sandy mengganas di AS

NEW YORK 30 Okt. - Sekurang-kurangnya 17 orang dilaporkan terbunuh di tujuh buah negeri apabila Taufan Sandy mengganas, membadai kawasan persisiran pantai timur Amerika Syarikat (AS), awal hari ini menyebabkan lebih sejuta penduduk di beberapa negeri terpaksa dipindahkan.

Antara negeri yang mencatat kematian termasuklah New York, New Jersey, Maryland, Pennsylvania, West Virginia dan North Carolina apabila taufan itu melanda AS sejak pukul 8 malam tadi (8 pagi waktu Malaysia hari ini, menjejaskan lebih 50 juta penduduk di wilayah itu.

Kira-kira sejuta penduduk yang terjejas teruk turut dipindahkan.

Taufan gergasi itu membawa kelajuan angin 130 kilometer sejam, melanda kawasan persisiran pantai sejauh beratus-ratus kilometer dengan beberapa negeri dilanda hujan lebat dan bandar-bandar utama lumpuh dengan bandar raya New York paling teruk terjejas.

Presiden Barack Obama mengisytiharkan dekri kecemasan di New York dan New Jersey, selepas taufan tersebut mengakibatkan kira-kira 13,500 penerbangan di seluruh negara dibatalkan semalam dan hari ini.

Bandar raya New York lumpuh apabila sistem pengangkutan kereta api bawah tanah terjejas teruk, terburuk dalam tempoh 108 tahun, sementara kira-kira tujuh juta penduduk di seluruh negara turut mengalami masalah terputus bekalan elektrik.

Satu kebakaran besar di kawasan penempatan di New York City yang banjir, menyebabkan 50 buah rumah musnah, namun hanya dua orang mengalami kecederaan ringan.

Suasana di sekitar pusat bandar Manhattan turut panik apabila banjir setinggi 3.9 meter menenggelamkan terowong-terowong dan stesen kereta api bawah tanah, selain menyebabkan pelancong serta pesakit-pesakit di hospital terpaksa mencari tempat berlindung.

Dalam perkembangan berkaitan taufan gergasi itu, dua buah loji kuasa nuklear masing-masing di New Jersey dan New York ditutup awal hari ini, namun operator loji menyatakan, ia tidak mendatangkan risiko terhadap keselamatan awam.

Pusat Taufan Kebangsaan menyatakan, Sandy yang berubah lemah kini bergerak ke kawasan pedalaman, namun masih mampu menghasilkan angin kencang serta banjir di sepanjang pantai timur.

Sejak membadai Caribbean beberapa hari lalu, taufan tersebut telah mengorbankan sekurang-kurangnya 67 nyawa.

Firma pengurusan bencana, Eqecat meramalkan, Sandy boleh menjejaskan kira-kira satu perlima atau 60 juta penduduk AS dan mengakibatkan kerugian berjumlah AS$20 bilion (RM60 bilion). - AGENSI

Bersyukurlah :)

Bersyukurlah apabila kamu tidak tahu sesuatu. Karena itu memberimu kesempatan untuk belajar.

Bersyukurlah untuk masa-masa sulit. Di masa itulah kamu tumbuh.

Bersyukurlah untuk keterbatasanmu. Karena itu memberimu kesempatan untuk berkembang.

Bersyukurlah untuk setiap tantangan baru. Karena itu akan membangun kekuatan dan karaktermu.

Bersyukurlah untuk kesalahan yang kamu buat. Itu akan mengajarkan pelajaran yang berharga.

Bersyukurlah bila kamu lelah dan letih. Karena itu kamu telah membuat suatu perbedaan.

Mungkin mudah untuk kita bersyukur akan hal-hal yang baik. Hidup yang berkelimpahan datang pada mereka yang juga bersyukur akan masa surut.

Rasa syukur dapat mengubah hal yang negatif menjadi positif. Temukan cara bersyukur akan masalah-masalahmu dan semua itu akan menjadi berkah bagimu.

otak kita mungkin rosak sebab......

OTAK KITA MUNGKIN ROSAK SEBAB.....

1. Tidak mengambil sarapan pagi - Apabila seseorang tidak mengambil sarapan pagi, paras gula dalam darah akan menjadi rendah. Ini akan mengakibatkan kekurangan bekalan nutrisipada otak dan menjadikannya kurang aktif.
2. Terlebih makan - Ia akan membebankan pembuluh darah otak dan mengurangkan kuasa mental otak.
3. Perokok - Asap rokok akan mengakibatkan sel-sel otak terjejas atau terbakar dan boleh menga kibatkan penyakit 'Alzheimer'.
4. Penggunaan gula yang berlebihan - Pengambilan gula secara berlebihan akan mengganggu penyerapan protein dan nutrisi. Selain daripada itu, ia akan mengganggu perkembangan otak yang sihat.
5. Pencemaran udara - Otak adalah pengguna oksigen terbesar dalam badan manusia. Pencemaran udara boleh menyebabkan pengurangan bekalan oksigen ke otak dan keaktifan otak.
6. Terlebih tidur - Tidur adalah bagus untuk merehatkan otak tetapi masa tidur yang panjang boleh mengakibatkan sel-sel otak kita mati.
7. Menutup muka ketika tidur - Tidur sambil menutup muka akan mengakibatkan otak menerima lebih banyak karbon dioksida berbanding oksigen dan ini akan membawa kerosakan kepada otak.
8. Membiarkan otak bekerja semasa kita berada di dalam keadaan kurang sihat - Bekerja semasa anda kurang sihat boleh mengurangkan keberkesanan otak dan juga membawa kerosakan kepada sel-sel otak.
9. Kurang berimiginasi - Berfikir adalah satu cara terbaik untuk melatih otak kita. Kurangnya berimiginasi boleh menyebabkan tahap kecerdasan/keaktifan otak menurun.

14 fakta menarik :)

14 Fakta menarik yang agak mencuit hati sebagai tatapan pengunjung yang dikasihi. Allah SWt tidak menjadikan sesuatu dengan sia-sia, setiap kejadian baik mahupun buruk ada hikmah di sebaliknya.

“Orang yang mengingati Allah ketika berdiri dan duduk ketika berbaring dan mereka memikirkan tentang kejadian langit dan bumi (mereka mengatakan): Wahai Tuhan kami! Tidaklah Engkau menjadikan ini dengan sia-sia, Maha Suci Engkau, peliharalah kami daripada seksa neraka.”(Surah Al-Imram, ayat 191).

1. Rama-rama merasa makanannya dengan kaki.

2. Bunyi itik tidak menghasilkan talun (echo).

3. Dalam tempoh 10 minit, taufan membebaskan lebih banyak tenaga berbanding

keseluruhan tenaga yang boleh dibebaskan dari senjata nuklear yang terdapat

di bumi.

4. Secara purata, ramai manusia lebih takut labab-labah daripada takut mati.

5. Gajah adalah satu-satu mamalia yang tidak boleh melompat.

6. Satu dari dua billion manusia akan dapat hidup sehingga 116 tahun atau

lebih.

7. Tidak mustahil bagi lembu menaiki tangga, tetapi ia tidak boleh menuruni

tangga.

8. Wanita berkelip mata dua kali lebih banyak dari lelaki.

9. Secara fizikal semulajadi, adalah mustahil untuk anda menjilat siku

sendiri.

10. Siput boleh tidur sehingga tiga tahun.

11. Saiz mata manusia tetap sama sejak dilahirkan, tetapi tumbesaran hidung

dan telinga tidak pernah berhenti sewaktu hidup.

12. Semua beruang kutub adalah kidal.

13. Mata burung unta adalah lebih besar dari saiz otaknya.

14. TYPEWRITER adalah perkataan terpanjang yang boleh dibina dari huruf-huruf yang terdapat dalam satu barisan yang sama pada papan kekunci.

*Marilah sama-sama kita sentiasa memuji kebesaran Allah SWT dengan selalu berzikir kepadaNYA..

Subhanallah. ..Walhamdulillah … wallahuakbar.

SMART GOALS

SMART Goals

If you ask most people what is their one major objective in life, they would probably give you a vague answer, such as, "I want to be successful, be happy, make a good living," and that is it. They are all wishes and none of them are clear goals.

Goals must be SMART:

1. S--specific. For example, "I want to lose weight." This is wishful thinking. It becomes a goal when I pin myself down to "I will lose 10 pounds in 90 days."

2. M--must be measurable. If we cannot measure it, we cannot accomplish it. Measurement is a way of monitoring our progress.

3. A--must be achievable. Achievable means that it should be out of reach enough to be challenging but it should not be out of sight, otherwise it becomes disheartening.

4. R--realistic. A person who wants to lose 50 pounds in~30 days is being unrealistic.

5. T--time-bound. There should be a starting date and a finishing date.