Ethics: The Enron Case - Essay Example

These maneuvers enabled them to report profits and hide losses from the books, and as a result of these maneuvers, their stock prices rose steeply as investors were attracted to the potential for future high prices. 

The machinations in their books of accounts were such that retail investors were had pushed to understand them; as a result, the management through the use of the market-to-market system enabled the company to manipulate profits and hide debts. At the time when the issue came to light, it had already been late, yet the laws that govern separate businesses from owners frustrated the efforts to compensate the investors. The actions of the managers in the Enron case are clear violations of ethical principles, and the ethical principles indicate that individuals are bound to a certain duty of care to investors, customers, and employees. Secondly, auditors failed in their duty of care to the aforementioned parties, and the chief auditor, Arthur Anderson admitted to the errors in the case.