The Impact Of Ethics On The Enron Corporation

Morality is very important, especially in the business world. Morality is an undocumented law or rule defined by the human nature, and morals meet when people learn the difference between good and evil. In 2001, Enron was the fifth largest company among the Fortune 500 companies. Enron is also a market leader in energy production, distribution and trading. However, due to Enron 's unethical accounting behavior, the company was in bankruptcy in chapter 11. This bankruptcy caused many problems among many people.

Many people have a say in Enron 's ethics. In my opinion, Enron's case is quite disgraceful for the whole moral company. Initially, Enron has developed rapidly and will never face moral dilemmas or problems. When the energy industry became the cornerstone of its business, the company was admired by the White House and Wall Street (DesJardins, J., 2006). Enron is enhancing its position as a competitive global business. It further supports deregulation of the free market and regards itself as a socially responsible organization through attention to the environment and other standardization activities in the third world countries. In order to diversify its activities, Enron uses deregulation and innovation of financial products such as derivatives. As financial instruments and other transactions become more complex, Enron will begin working on fraudulent accounting practices.

At first glance, Enron looks like a good corporate citizen with all corporate social responsibility (CSR) and business ethics tools within the community (Sims & Brinkmann, 2003). However, the Enron scandal is the biggest enterprise scandal in history, a symbol of institutionalized, well-planned corporate fraud, Enron scandal contains illegal and unethical activities. According to Carroll and Buchholtz (2008), CFO Jeffrey Skilling and CEO Ken Lay played an important role in the Enron scandal. They are all working on conspiracy for fraud and profit expansion. In Enron's camouflage debt, Lay and Skilling used ready-made partnerships to "lie to investors and employees about the catastrophic financial situation of companies in the sale of their stocks" (Carroll & Buchholtz, 2008, p. 256).

One of the most notable projects on e-Bay after the Enron scandal was a copy of Enron's Ethics 64 pages. The seller / former employee said he was "never opened". Enron, Chief Executive Officer, says, "We are proud of Enron, we know that it has a fair and sincere reputation and is respected. (Enron 2)" We will make such a broad ethical sense For CEOs who want to respect the company, there are still unresolved issues, what went wrong.