Ethical Issues In Enron

1444 Words6 Pages
Introduction:
This paper concerns the Ethical practices of which should be observed in a day to day way of life. You will see, not only a Company ethical decision came into question but, its Staff, Employee and other members outside of the company.
You ask yourself, how much is too much and how much will I be giving up? Do you think its just money, life, friends, or family? Or, would you say, they involve all of just some? For me, I think they would involve all of the above. Money only last for a short period of time. Life, how much are you willing to sacrifice. Friends, how many will tell you to do the right thing. And most of all, how would your family feel with what you have done to them as well as you.
My story begins with the Rise and
…show more content…
These practices resulted in the creation of substantial accounting gains that offset the recognition of true, lies, economic losses, deception and unethical behavior. In order for their schemes to work, managers did not plan for the one factor that would ultimately expose their bad behavior, and the decline in Enron’s stock price. This paper will explain some of the transactions Enron managers created and the related improper reporting that kept losses off Enron’s financial statements. I’ll also discusses the ethical issues that allowed these schemes to thrive for so long before being exposed. I’ll try to provides a simplified overview of complex financial transactions, but the ethical violations are clear and easily understood. Money, greed, lust and power is what most people seek to gain when taking advantage of others and at their cost. These ethical issues include misleading representations to the Board of Directors, lack of proper deal approvals, personal gains by management, pressure on subordinates, and the lies told to their…show more content…
Investigators say, the auditor was complicit in perpetrating one of the biggest frauds in corporate history. Hundreds and hundreds of people were put out of work, and thousands of investors including the employees lost billions of dollars as Enron 's shares shrank to penny stock.
Shredding documents, allegations of company officials willfully ignored internal warnings about the accounting irregularities, stories of executives seeking help from top administration officials as they pocketed millions of dollars in stock market gains. It became clear that the sudden collapse of the country 's seventh largest company was going to have implications for business, but for politics and policy as well. Enron and their officers were among the biggest donors to U.S. political campaigns over a decade.
Some people say, deregulation of the energy business created the environment for Enron to fall. Chairman and Chief Executive Officer Kenneth Lay was invited to take part in Vice President Dick Cheney 's task force on energy policy that took behind closed doors. Enron executives, particularly Lay, are very close with several members in Washington including President Bush who refers to Lay as Kenny
Open Document