Nobody downloaded yet

Business Ethics Enron case - Essay Example

Comments (0) Cite this document
An Expired Meat Looks so Nice Big companies attract a lot of public attention. It means more people would want to invest because the company is so successfull. But no matter how big the company, it will still go bankrupt if they have commited unethical business practice just to achieve their successs…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER94.6% of users find it useful
Business Ethics Enron case
Read TextPreview

Extract of sample "Business Ethics Enron case"

Download file to see previous pages It has dominated the business world in many divisions such as; natural resources, plastics, power, steel, broadband and principal investments. The men who were responsible of Enron’s demise were Kenneth Lay, Jeffrey Skilling, and Andrew Fastow. According to the Permanent Subcommittee on Investigations of the Committee on Governmental Affairs Enron commited high risk accounting, and disclose too many information about their cashflow. They hid their loss to attract investors for them to keep investing in the company. No one in the company reveal the truth until the social analyst starts to do some research because some of its data just do not make sense and found out the fraud that Enron had been committing. The company can had been falsely registering profit with its value increasing at a dizzying figure of 10 billion to 65 billion. But these unfounded profits have its price as it adversely affected the lives of those who invested in the company because they never got their money back. The fraudulent and unethical business practice of Enron can be traced back to its leadership. Leadership at Enron took a twisted turn when it became obsessed with increasing the value of its stock prices. Its sense of excellence also became crooked as reinforced and perpetuated by its leadership. It promoted a corporate culture of callousness when it arbitrarily ranked half of its employees as non-performer which it will eventually fire. The other half remaining may have remained in the company but adopted a corporate value system that is virulently greedy and fraudulent as promoted and reinforced by its leadership through its performance appraisals. The culture of a company is one of the basic aspect of an organization and often, its behaviors are often based on that corporate culture. At Enron, the company culture has a structure where they place the individuals who have a higher position at the upper level of the office, and ordinary workers who have less power in the company occupy the ground level of the office. This company structure reflects that people who can better adapt with Enron’s unethical business practice will control most of the activites, and create a decision and others who cannot will be relegated as subordinates. This culture of giving too much power on people who are unethical promotes the culture of fraud in th eorganization where greed is encouraged and money became the central value of the organization that they no longer care about the environment as long they gain money. As a company Enron does not have positive control environment “ the tone or culture of a firm the control environemnt sets the tone of organization, influencing its people”. (Hartman and Desjardin Pg. 539). In my point of view the negative control environment that Enron company sets it is to make their workers adapt with the situation of the company that they work 12 hours per day only thinking of how to make a billion profit to the company by doing fraudulent on the stakesholder. This practice alone of inducing employees to work all day long and forgo other aspects of their lives such as family and social lives is not healthy. Duty care does not also exist in its organizational structure. Kenneth Lay, Jeffrey Skilling, and Andrew Fastow does not apply the duty of care aspect to on their decision. “Duty of care involves the exercise of reasonalble care by board member... their management responsibilities and comply with the law” ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“Business Ethics Enron case Essay Example | Topics and Well Written Essays - 1250 words”, n.d.)
Business Ethics Enron case Essay Example | Topics and Well Written Essays - 1250 words. Retrieved from
(Business Ethics Enron Case Essay Example | Topics and Well Written Essays - 1250 Words)
Business Ethics Enron Case Essay Example | Topics and Well Written Essays - 1250 Words.
“Business Ethics Enron Case Essay Example | Topics and Well Written Essays - 1250 Words”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Business Ethics Enron case

Enron and Ethics

...The Enron case is one of the worst accounting scandals in US corporate history. After the Enron debacle the government made changes to the regulatory status of the accounting profession and created the Sarbanes and Oxley Act (SOX) of 2002. SOX was created in order to raise investor confidence after the Enron and WorldCom debacles (Techtarget, 2011). Enron had a business model that was somewhat difficult to understand, but as a public company they in theory had a CPA firm auditing all their financial statements. The company that was in charge of those audits at the time was one of the biggest five accounting firms in existence. Arthur...
2 Pages(500 words)Essay

Business Ethics: Apple case

...?Business Ethics: Apple Case Business Ethics: Apple Case Explain how Apple’s philosophy and organizational culture have impacted how it handles ethical decisions. Apple Inc. has remained in the limelight in the technological industry since Steve Jobs took over the company as its CEO in 1997. After Jobs was in control, Apple Inc. went through extensive changes in its corporate culture. A company’s organizational philosophy and culture can be defined as the sum of morals and behavioral patterns that contribute to the exclusive social and psychological environment of a particular organization. A more detailed version concludes that organizational culture has six basic elements. One, it is a model of fundamental assumptions. Two... , it will find...
6 Pages(1500 words)Essay

Enron Case: Accounting Controversies

...Accounting Controversies INTRODUCTION They say that accounting is the language of business. A German investor would be ably informed of how the United States company Kentucky Fried Chicken or any other enterprise has performed in terms of generating profits. The accounting language has its own set of technical words that a person studying basic accounting would easily understand. Accounting is governed by United States generally accepted accounting principles. The External auditor issues an opening as the fairness of the financial statements. The following paragraphs explain that some persons preparing the accounting statements do not follow the U.S. GAAP. BODY The Enron and Arthur Andersen hit the...
5 Pages(1250 words)Essay

ENRON Case Study

...Introduction Firms may window-dress the financial ments in order to show a rosy picture of their accounts. In such a case, the whole exercise of analyzing the statements becomes useless. Window-dressing is also done to forecast a better picture to shareholders, bankers and financial institutions. It is a rosier picture that what it actually is. “In October 2000, Enron’s financial cover was blown and the financial house of cards that Andersen helped to create collapsed in five weeks.  The implosion of Enron is the largest bankruptcy in American history.  What is so staggering, so appalling, so outrageous is that this once $50 billion company melted to nothingness during the period...
6 Pages(1500 words)Essay

Case study (enron case)

...This paper is about the of action that an up and coming executive at Enron would have taken when confronted with issues involving disclosure of wrong doing and attempts to cover them up. The issue at stake is whether I, portraying myself as the fictional executive would blow the whistle on the unethical business practices which I have been made aware of and the knowledge that has come to my notice regarding the same. First, I always believe that there have to be appropriate channels for whistle blowers to report unethical behavior and that there should be designated points of contact to take cognizance of the instances of wrong doing and take appropriate action on them. These should be in the form of...
3 Pages(750 words)Essay

Enron case

...frameworks. The auditing procedures prior to the Enron fraud were sufficient to ensure that there is high audit quality, but in some cases fails to identify misappropriations (Hodgetts & Luthans 33). There have been significant changes in accounting regulations after the collapse of the Enron Corporation with the main objective of ensuring veracity of the financial statements. This is because most corporations faced accounting issues and poor quality of audit procedures. One of the new accounting regulations after the collapse of the Enron Corporation is the Sarbanes-Oxley Act passed during 2002 and incorporated numerous strictures on audit and accounting policies and...
4 Pages(1000 words)Essay

Case study: Enron

...Case study: Enron November 23, Case study: Enron Human resource management is an essential element of organization’s management because of its sensitivity to employees’ environment. This paper reviews a case study, on Enron’s human resource management strategy and the problem that faced the company. Summary of the case The case outlines history of Enron that begun as a small organization and abruptly expanded before its collapse in the year 2001. Central to the temporary success was the company’s employee recruitment strategy, Employee Value Proposition, which focused on the...
2 Pages(500 words)Term Paper

Business Ethics - The Enron Scandal universal ethics point of view-

...The Enron Scandal Affiliation: The Enron scandal remains a historic event in the world of business. The collapse of this giant company elicited mixed actions and reactions within and without the United States. The corporate sector was forced to rethink its overall strategies and operations. Specifically, many corporations began to take caution relative to accounting practices. The Enron scandal made it known that corporate fraud and corruption had gained ground in the business setting (Collins, 2006). Addressing Enron’s situation can take a number of alternatives, all of which revolve around the underlying ethical issues. The accounting fraud that would eventually come to be known as the Enron scandal was a creative, institutional... to...
2 Pages(500 words)Case Study

Business Ethics Case Study

...1. American Therapeutic Inc., the entire population of the United s that might one day be prescribed the drug, and the FDA. 2. Priority rank population of individuals that might one day be prescribed the drug, 2) American Therapeutic, 3) FDA 3. Ethical norms and principles were obviously violated by both the CEO of Vegesna and Chang; as both colluded to circumvent the law and engage in bribery as a means of promoting their own self interests above the safety of the population and the system of approval specified by the FDA. 4. The winners in this case were American Therapeutics and the individual Chang. Due to the fact that the drug manufacturer was able to effectively bribe Chang and circumvent the...
2 Pages(500 words)Case Study

The Enron case

...with the goal of protecting the interest of the shareholders, on various occasions, the company’s board waived conflict of interest rules. These rules permitted CFO Andrew Fastow to create a vibrant private partnership to do business with Enron. As a conclusion, the Enron Corporation’s case was the biggest in a series of scandals, and a lot to do with ethical issues can be learned from the case. The damage to reputations of corporations was evident, and the case helped expose various accounting malpractices that occur to some companies that are unknown to the public. The Enron company scandal moved the...
6 Pages(1500 words)Case Study
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic Business Ethics Enron case for FREE!

Contact Us