ipl-logo

Enron Code Of Ethics

735 Words3 Pages

First of all, I think the final collapse of Enron on December 2, 2001, under Lay and Skilling was because of their leadership style and corporate administration issue that prompt to the corporate culture of the organization. The failure of the company was not only caused by one person’s doing but whole top management from the beginning. As the Chinese saying goes, “paper cannot hold a fire.” Hence, the mistakes they made accumulated day by day and finally end up with huge debts and bankruptcy. The things which had Lay and Skilling did is difficult to show both of them were violating laws. In fact, it is both of them that formed the corporate culture and bring in their own beliefs and instill into the company.
Enron’s code of ethics was based on respect, integrity, communication, and excellence. A company’s ethic code is extremely important as it will keep the company not engage in business activity which violates the rules. However, Lay and Skilling did not follow that ethic code. The core of these code of ethics was …show more content…

Workers in Enron were being supported to think out of the box and being creative. They were also allowed to break the rules and increase the value of company although there was no cash generated. Soon, many employees in the company started to use this method to cover and hide losses. Without anyone knowing the company was losing money, they did not have to bear the consequences and responsible for their mistakes. The integrity of Enron was contaminated as a result end up if anyone did mistakes and no one finds out, keep quiet. This is one of the reasons why Enron will collapse. As the small losses accumulate day by day, it will become a huge debt for the company. Enron seemed to be more profitable than it really was by keep hiding the losses ("Enron Scandal: The Fall of a Wall Street Darling",

Show More
Related

What Caused The Sarbanes-Oxley Act Of 2002

71 Words | 1 Pages

The financial scandals in early 2000s caused the Sarbanes-Oxley Act of 2002 to be created. Enron, WorldCom and the accounting firm, Arthur Andersen, to intentionally mislead their shareholders by exaggerating their profits and understating their expenses. The scandals had raised the importance of internal control for enhancing corporate governance. Therefore, the government established the SOX to protect the interest of the investors and employees and to monitor the companies and auditors.

Read More

Essay On The Sarbanes-Oxley Act Of 2002

689 Words | 3 Pages

Take Enron for example, in the later 1990s its stated worth was estimated to been around $70 billion dollars, but after internal review it was found that much of its debt was allocated to falsely created businesses leaving its stated assets to be significantly lower than its actual debt. The scandal was such an issue for all its investors and the government predominantly because its net value decreased radically and by December 2, 2001 the company declared bankruptcy. One of the main issues of this scandal that investigators found was that the company hired auditor, Arthur Andersen, was conspiring with the CEO and CFO to falsify the financial documentation. Had the SOX Act been implemented prior, these falsifications would have been addressed long before the company declared bankruptcy. Of the eleven sections in the SOX Act, Title III Section 802, address what constitutes as fraud and would have held the Enron and Arthur Anderson accountable for submitting proper documents.

Read More

Wells Fargo Fraud

496 Words | 2 Pages

This is a cautionary tale of how corporate crime can cause severe harm. The shareholders were prevented by those perpetuating the fraud from selling while the stock was falling, while at the same time they moved their money out of the company. The final outcome was that the perpetrators being Jeff Schilling CEO, Ken Lay, and chief financial officer Andrew Fastow each received hefty sentences. According to CNN, Skilling was originally sentenced to 24 years, the longest sentence of any Enron perpetrator, and has been incarcerated in the federal prison system since his 2006 conviction. He had been facing a release date of Feb. 21, 2028,” (Smith).

Read More

9/11 Business Ethics

887 Words | 4 Pages

When a tragedy occurs, networks such as FOX, CNN, and NBC immediately air coverage. This coverage alerts graphic designers and in turn, they begin creating logos. The network plasters the logo on everything: hats, t-shirts, and sweaters. The logo, for all intents, becomes the event. During national tragedies, the logo or advertisement can benefit victims by promoting awareness which lends to support.

Read More

Who Is The Key Protagonist In Enron's Obedience?

613 Words | 3 Pages

The “Teachers” were the analyst and employees of Enron and the CEO’s and heads were the men in white coats. There rigged experiment was in financial tools and deregulations of the markets. The only major difference was the level of pain felt by the “Victims” in Milgram’s experiment no shocks were ever felt but for the Enron speculators it was a financial pain that would stay for the rest of their lives. The men in white coats in the Enron story were Ken Lay and Jeff Skilling, these key men should have set the moral bar at Enron and should have upheld there core values, set out in there code of ethics at the inception of the company, shown

Read More

Pinto Fires

413 Words | 2 Pages

Despite the world 's trend toward upholding business ethics, the major corporate scandals in the past decade including the familiar Enron, WorldCom, Tyco, AIG, and Madoff cases along with Toshiba 's disgrace in the recent days, send a clear and consistent message and that is: we are still living in an era of immaturity in ethical awareness. You may be thinking to yourself, "I have a high morale and I know I won 't give in to pressures to do something to make such a scene". While a high morale makes it more likely to act ethically, the problem is in reality when people face scenarios involving ethical issues, often they are not even aware of the ethical implications of their actions and so they think they 're doing the right thing. This is probably mainly because we subconsciously rely on the "ethical efficiency" of our guts to make judgments and internally carry an illusion of morality. Take Dennis Gioia, the Management and Organization Department Chair at PennState University, as an example.

Read More

Wells Fargo Essay

1171 Words | 5 Pages

In the case of Wells Fargo, the firm had all of these things “on paper”, but in practice the firm was not run in an ethical manner. For example, the firm had a “Recommended Process for Resolving an Ethical Dilemma” and a “Non-Retaliation Policy” for Whistleblowers. However, in reality Whistleblowers were fired using false pretenses such as “tardiness” and flagging managers or human resources for unethical behavior was either routinely ignored or led to an employee being fired. Management routinely touted “integrity” as a core corporate value but incentivized employees to ‘push’ financial products by tying compensation to sales quotas and by creating a culture where employees who missed their quotas were harassed, by being forced to attend calls on Saturday for example. In sum, the firm pretended to maintain an ethical corporate culture, but its culture in practice was the exact

Read More

Enron Analysis Essay

887 Words | 4 Pages

Enron Analysis Enron is a great play which presents a dry story about business in a colorful and cartoonish way and impressed me with a variety of elements, including video, music, choreography, and dance. This is a play depicts the spectacular collapse of a Texan energy giant-Enron. As an audience, I witnessed how a business empire was built on shadows, accruing debts of 38 billion dollars and finally going bust in this two hours and thirty minutes play. In the following passage, I will describe, analyze, and interpret this play both about its script, including characters and plots, and its production, such as the videos, stage props and customs.

Read More

Stock Options And Why Every Employee Should Have Them

575 Words | 3 Pages

Just like with the fall in Enron most of the top executives who had big shares in the corporation turned a blind eye just so they can get a big payout. Which then turned out to be their

Read More

Eight Lenses In Business Ethics

1306 Words | 6 Pages

1. Introduction – ethics – what are they? Ethics (or moral philosophy) is the kind of philosophy that define concept of right or wrong conduct. In practice, ethics try to resolve questions of human morality, by explaining concepts of good and evil. Ethics, culture, morals – are bind together, they are embedded.

Read More

Enron Ethical Dilemmas

1654 Words | 7 Pages

“Enron was a pioneer; they were risk takers and treated their employees like entrepreneurs. Think big; take chances, go where no one has gone before. Unfortunately, it now looks like Enron’s profit was as volatile as the natural gas they traded” (DeLongs, 2002). This dilemma was gradual and was years in the making. The simplest summary of the dilemma was that Enron was pushing a culture of promoting rule-bending and legal loopholes to continue their economic growth and success.

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

Ethical Issues In Waste Management

1009 Words | 5 Pages

The false accounting records were unethical because it means management was enriching themselves. They were getting earnings based on the false availability of funds. They also did this to keep their jobs. When a company is not performing financially well the top positions are the ones usually at risk of being retrenched, as a result of implying the company was financially stable they were protecting their jobs. False accounting also results in duping investors that trust the financial records of the company.

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

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

More about Enron Code Of Ethics

Related Topics

Open Document