Enron is the infamous subject of many an analysis of ethical and legal dilemmas. The company broke just about every ethical rule in the book and it is a prime proponent for this essay. Ethics in the business sense, per Investopedia, is defined as the study of proper business policies and practices regarding potentially controversial issuses such as corporate governance, insider trading, bribery, corporate social responsibility and fiduciary responsibilities. Ethics are often the product of laws, but sometimes are the product of general public rules and norms. In the years leading up to the big break where Enron's card house fell apart, the company's accountants and executives were very shady with the company's accounting. The Chief Financial Officer, Andrew Fastow, was the mastermind behind the inflation of stock prices using shell companies and various complex accounting methods that were basically lies. Fastow colluded not only with other executives and insiders wihtin the company, but also Enron's auditors and consultants at Arthur Andersen. Over a few years, Enron consistently falsified financial statements in a way that was so complex that almost no-one knew what was going on. In the end, the …show more content…
The accounting methods used at the time were in a somewhat grey area for the field of accounting and not many knew what was happening. However, those that did know, should have blown the whistle. An important part of the accounting profession is truthfulness and although the information was there, the company was not being as truthful and forthcoming with the actual state of the company. Certain employees knew this and in the end, Sherron Watkins, in August of 2001, blew the whistle on the whole operation. While it did take a long time for her to come forward about the shaky, unethical operation, she did come forth to tell the truth and act