Enron's Code Of Ethics

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Ethics are the principles and values an individual uses to govern his or her activities and decisions. In an organization, a code of ethics is a set of principles that guide the organization’s programs, policies, and decisions. The ethical codes an organization uses to conduct business can affect the reputation, productivity of employees, and the culture around the company. Consumers and employees also like to work for and support organizations that are in line with their own code of ethics.
There are two different way to approach ethics. One approach is the "individualistic approach" and the other approach is the "communal approach." Each approach incorporates a different view of moral responsibility and a different view of the kinds of
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Another example of the lack of corporate governance is the issues with Enron. Enron was founded in 1985 and became one of the biggest accounting scandals in history. Enron was once ranked the sixth-largest energy company in the world. There were numerous ethical dilemmas in addition to the many illegal acts of rising and fall of Enron. Enron’s stock was valued at $90 per share in 2001 and was worth almost nothing at the end of the same year. The downward spiral that began since Enron’s accounting fraud was exposed affected all their shareholders and employees. Billions of dollars were lost and thousands of jobs were mislaid. After Enron’s fall, the US authorities have analyzed the situation and have attempted at undoing the wrong in a variety of…show more content…
Enron managed to hide millions of dollars in debt and losses through unlawful accounting practices. They hid these losses under their many subsidiaries, often in foreign countries. In event of the fraud being exposed, Enron’s stock crashed but few of the management members managed to bail themselves out by selling the stock when it was still at a high. The investors and employees were left high and dry to face the loss of their investment, pension and retirement amounts. There are many criminal investigations and cases registered for Enron executives. These executives have been known to receive hefty bonuses just before the collapse of Enron (Oppel). A high moral ethics code was not enforced within this organization and a result Enron was stuck in a legal case that gave birth to and contributed to the creation of the U.S. Sarbanes-Oxley Act, signed into law on July 30, 2002. The purpose of this act is to protect people from the types of deceptive acts that took place within Enron (Litigation
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