ipl-logo

Enron Code Of Ethics Essay

1509 Words7 Pages

Enron has a 64-page enron code of ethics based on, respect, integrity , communication, and excellence. Kenneth lay, former chairman of Enron echoed this sentiment in a statement saying “we are responsible for conducting the business … moral and honest manner.” (source) The company went on to gained 100 billion in revenue, one of the fastest growing in the economy at 2000. Short after one year afterwards, 2001, Enron declared bankruptcy with numerous of its executives charged with fraud , money laundering and many other questionably moral behaviour.
Enron prides themselves in having their code of ethics, which are forms of moral rules; standards of behaviours that dictates the way employees conduct themselves in business. After multiple charges …show more content…

One of the main reason why Enron still keeps these codes of ethics, despite not using it was to build trust in the customers/investors. Kenneth lay , former chairman would go on to be quoted in books, seen promoting these code of ethics. (sources) Just like many other companies, showing code of ethics was a way for the company to gain trust from investors, to eventually have business and gain profit with them. This is beneficial for the company. However, Enron has turned this trust, as a reason to even fool more people. In the case of Enron, the code of ethics becomes unrealistic values that the outside world falsely idealised. Again, code of ethics was ignored and did not change the morally corrupt culture Enron …show more content…

Most of the unethical behaviours in Eron was done for personal gains and sometime to gain profits for the business. Moral imagination theorist challenges this, they believe that there is a false dichotomy between ethics and success. It believes that you don thave to become unethical to become successful. It suggests that one should imagine and envision ingenious solutions to an ethical problem that are both ethical and successful. An example of moral imagination is from the company nestle foods. When the trend of food advertisement to young children are high sugar, high fat products, nestle food choose no to do that but instead create healthier products to stay competitive in the market. Enron and other companies can follow suit this trend. Enron at the time , complicitly work with other businesses. tHus, an ingeneous solution that would be proben to become more ethical but also equally successful can be attractive to these businesses. Moral imagination can not only solve the ethical problems of one company, but a whole set of companies in the same area or

Show More
Related

  • Corporate Social Responsibility In Sauk Valley Community College

    1282 Words  | 6 Pages

    Another major CSR failure was the Enron Scandal in 2001. Initially to investors, Enron seemed like a lucrative opportunity with shares reaching $90.75 (Investopedia). However, CEO Jeff Skillings, in collaboration with top executives and the corrupt accounting firm of Arthur Andersen LLP, managed this feat by leaving debt and major company losses off of balance sheets or, in other words, perpetrating accounting fraud. Once the scandal was revealed to the public, stocks plummeted to under a dollar, and the company was forced to declare bankruptcy, severely damaging the portfolios of thousands of loyal investors and costing Enron employees their jobs. As a result, the Sarbane-Oxley Act was put into place to heighten the penalty for the fabrication of accounting documents.

    Read More

  • Business Case: Solomon V Solomon And Co. Ltd.

    2193 Words  | 9 Pages

    Enron had losses of $591 million and had $628 million in debt, by the end of 2000. The U.S. Securities and Exchange Commission (SEC) started an examination, Enron declared for bankruptcy under Chapter 11 of the United States Bankruptcy Code. Enron's $63.4 billion in resources made it the biggest corporate bankruptcy in U.S. Subsequently fiduciary responsibilities hold that fiduciaries must protect the interests of the laborers and retirees in their advantage arranges but Enron neglected to do so. However, reporting of incorrect profits, insider trading and the use of accounting methods that constituted accounting fraud breaches the duty to care.

    Read More

  • Howard Gardner's Five Minds For The Future

    1311 Words  | 6 Pages

    Therefore it is beyond the scope of the ethical mind to make the determination of whether the output of the creating mind is in fact ethically valid. But applying principles of the ethical mind in real life and real workplace settings is not always easy. But one thing is certain: if one hides behind a "veil of ignorance" and deliberately shuts off one 's mind to one 's real position in the world, then one is certain to have a faulty ethical mind that makes bad ethical decision (Gardner 9). For instance, the companies globally are now under scrutiny for setting up off-shore shell companies in the tax heaven through a Panamian law firm called Mossack Fonseca (“Giant”). This scandal shows the huge willingness of global corporations and even powerful political leaders

    Read More

  • Bernie Madoff Scandal

    674 Words  | 3 Pages

    In his paper, Organizational Sustainability: The Three Aspects that Matter, Joseph Coblentz believes in order for an organization to experience long term success it must pay particular attention to its morals (2002). Coblentz states “Leadership, management and staff not only act ethically, but are also perceived as doing so” (2002, p.4). Bernie Madoff’s actions were anything but ethical and morally correct. His company lied to its clients from the initial moment they begun to do business together. Madoff promised to invest his client’s money but actually only used their money to fund his own personal interest and the Ponzi scheme he used to hide it.

    Read More

  • Wells Fargo Ethical Theories

    468 Words  | 2 Pages

    Decisions taken within an organization are made by the leadership in light of the company’s culture, principles and policies. Leaders are the role models as they set the tone for the ethical stance of their individual followers, or the group they lead. As an ethical leader, they are expected to take responsibility and work to correct mistakes. They must ensure the company has an effective internal controls in place to identify unethical practices. In my opinion, big companies in their audit and compliance committees should have members who may act as ethicist to assess whether the actions of the company are consistent with the desired ethical

    Read More

  • Examples Of Unethical Behavior In Business

    1191 Words  | 5 Pages

    A) Introduction Unethical behaviors in business affect everyone since you either work in the field or are a consumer of its services. Unfortunately, almost every company usually has individuals who act unethically whether it is for their personal benefit or for the sake of the company they work for. Unethical behaviors in business might be as simple as using company property or funds for personal gain to inside trading and financial fraud. According to The Chartered Institute of Management Accountants, nearly one third of business professionals feel pressured to compromise their ethical standards and are increasingly pushed towards unethical behavior. Moreover, “misconduct is common and accepted by business services professionals, the integrity of entire economic systems is at risk”, states Jordan A. Thomas, partner and chair of the Whistleblower Representation Practice at Labaton Sucharow law firm.

    Read More

  • Ethics And Moral Issues In The Enron Scandal

    931 Words  | 4 Pages

    Kenneth Lay, Mr. Jeffrey Skilling and the company CFO, Mr. Andrew Fastow .The management level of Enron Corporation had misconduct the code of ethics and fail to performing the duties of a corporation which is telling the truth of the situation of a corporation .Instead , they tried try to hide the truth of their financial status and create a false prosperity situation and make the public believe on them in order to support their shares prices . The misconduct of code of ethics by the management level by Enron corporation has led to the another question – The ultimate responsibility of a corporation towards society ? The ultimate responsibility of a corporation is to gain profit or become a stable economic unit ?

    Read More

  • Business Ethics Case Study: The Johnson And Johnson Case

    1262 Words  | 6 Pages

    Introduction The key ethical issues that were presented in this case study were quality control, lack of customer care, responsiveness, and harming the customer. The Johnson and Johnson case may have been seen as a turning point due to many things the company did right. However, there were many ethical issues in this case which will be explored more throughout this paper.

    Read More

  • Essay On Ethical Leadership

    1451 Words  | 6 Pages

    “Ethics”, in an organizational context, comprises a set of behavioral standards, expressed as norms, principles, procedural guides, or rules of behavior, defining what is appropriate (right) and inappropriate(wrong). Grounded in a system of values and moral principles, these behavioral

    Read More

  • The Importance Of Business Ethics In The Business Environment

    1813 Words  | 8 Pages

    This statement is supported by Bennett (2014) wherein ethics clearly defines what is the right and wrong things and shapes what kind of behavior the business should act on. For the sense of business according to Joseph (2013), ethics are constructed and decided by each business and underpins decision that an employee makes. When it comes to the business’ environment, a well-constructed ethics is a key for a considerate and responsible decision making in a business (Bennett, 2014). Business Ethics is very important inside the company, it will show the moral standards that a company or business have whether it is right or wrong and good or bad.

    Read More

  • Examples Of Business Ethics Of Nestle

    2901 Words  | 12 Pages

    Business ethics also referred to as corporate ethics can be considered as either a form of applied ethics or professional ethics. Its purpose is to analyse ethical principles and also moral as well as the ethical problems that might arise in a business environment. Business ethic is applicable to all parts of business conduct and also takes into consideration the conduct of individuals and the business organizations as a whole. Business ethics can be divided into normative and descriptive discipline. For the purpose of this assignment, the Nestle Company has been chosen.

    Read More

  • Ethical Leadership In Organizational Behavior

    1106 Words  | 5 Pages

    Ethical leadership is related to employee job satisfaction by impacting a positive influence on employee performance (Resick et al., 2011). The ethical leadership also found to increase the intrinsic motivation and job responses (Piccolo, et al., 2010). The willingness of the employee to report any concern and problem also depends on the organization culture and leadership behavior (Brown et al., 2005). It is also studied that a leader with strong ethical traits can affect positively to task significance and autonomy of the employee job (Ruiz, Ruiz & Martinez, 2011). According to them, the followers have willingly perceived the good traits of their leaders and thus good moral, values are practiced in an organization that can shape the overall

    Read More

  • Unit 2 Business Ethics Task 2 P1

    1263 Words  | 6 Pages

    Ethics Program for 2015 Task 2 Erica Young Western Governors University – Missouri Table of Contents Code of Ethics…………………………………………………………………… .03 Acceptable Use of Electronic Mail………………………………………….. 03 Acceptable Use of the Internet ……………………………………………... 03 Acceptable Employee Conduct …………………………………………….. 04 Acceptable Dress Code ……………………………………………………..

    Read More

  • Literature Review On Unethical Behavior

    2877 Words  | 12 Pages

    Review of Literature Unethical behavior can tarnish a company’s image and reputation. If a company is unethical, they may have to spend additional money to improve their public image, as well as gain back as many customers as possible. The reason I have chosen to use articles that are quite a few years old and that are not so recent is because I feel that they are very good examples of what I am trying to prove in the terms of ethical behaviour within companies and these specific articles relate well to my chosen topic.

    Read More

  • The Importance Of Business Ethics In International Business

    1039 Words  | 5 Pages

    The earlier opinion stated that a business cannot be ethical, but this opinion is not used anymore in the modern business. Today business has belief that they must be responsible for social since they live and operate within a social structure. The key factors that make business ethics is important at the quarter of the 20th century are corporate social responsibility, corporate governance, and globalized economy. The culture of an organization, or else we can call it as the philosophy of an organization which is related with ethics have a great relationship with the performance of a business in long and short term. As a business is manage by human being, the people who manage a business

    Read More

More about Enron Code Of Ethics Essay

Open Document