These, unwisely, were ultimately secured, and hence dependent, on Enron’s rapidly rising share price. The executives at Enron, mainly Kenneth Lay, Jeff Skilling, and Andrew Fastow had the most to gain or lose from the rise or fall of Enron. One of the most celebrated companies in America, Enron, became the poster child for greed and fraud. Ethical theory provides us with a system of rules or principles that guide us in making decisions about what is good or bad and right or wrong in a particular situation. If you’d like this or any other sample, we’ll happily email it to you. My second recommendation is that companies should make a point of following its code of ethics. The parties involved also … Are you interested in getting a customized paper? However, the experiment in deregulation in California didn’t work well and in due course was reversed with recriminations all round. It is also a good example to illustrate how ethics drives culture which in turn pushes the ethical boundaries and is a key influence on all the four other key elements of good corporate governance. The case illustrates a number of problems and key issues that Enron experienced in the course of its operation. The scores out of ten (high is good) result from a set of questions which aim at deriving an independent, unbiased view from the interviewees, based on observations of corporate behaviour. Items/Products added to Cart will show here. We will occasionally send you account related emails. An Enron Scandal Intro At its simplest, the Enron scandal is about fraud, the complexities of deregulation and a system that rewards companies for how they look on paper. The Enron scandal was caused by a business culture that promoted unethical practices (Jennings, 1999). All rights reserved Gradesfixer ™, “The Ethical Issues and Argumentation Related to Enron Case.”, The Ethical Issues and Argumentation Related to Enron Case [Internet]. And the top management, who were rewarding themselves with these same incentive schemes, boasted that a pure, market-driven ethos was propelling Enron to greatness and deluded themselves that this equated to ethical behaviour. GradesFixer.com uses cookies. Enron's Ethical Dilemma: Ethical and moral issues have received substantial focus in the modern society because of the recent cases in which huge corporations with big profits and earnings have faced bankruptcy. Legal Issue in Business: The Case of Enron [Name of the Writer] [Name of the Institution] Legal Issue in Business: The Case of Enron Introduction Business ethics is based on normative ethics , standards that ethics are upheld and applied specific to distinguish what is right or wrong, that is to say what should be done or who should not be fact. You can order Unique paper and our professionals Rewrite it for you. On top of that none of the responsible parties – i.e. One of the major problems evidenced in the case touches on the accounting system used by the firm. Applied Corporate Governance is a digital publisher and training company committed to highlighting the lessons learnt from governance failures and promoting sustainable growth through good corporate governance in private and public sectors and the third sector. He persuaded Enron to set up a Gas Bank through which buyers and sellers of natural gas could transact with each other using an intermediary (Enron) whose contractual arrangements would provide both parties with reliability and predictability regarding pricing and delivery. Remember: This is just a sample from a fellow student. Why pick Enron? Enron Corporation is an energy trading, natural gas, and electric public-service corporations company located in Houston, Texas that had around 21,000 employees by mid-2001, before it went bankrupt. But the debate over corporate conduct remains relevant. management, SEC, accountants, employees raised any obligations to how business was being conducted. In due course it had deals all round the globe, from South America to China. In the Utilitarian theory, a person should consider how their actions might affect all parties involved and choose a decision that maximizes benefits. What we have called the “sniff test” represents the personal view of the interviewee and would take into account their gut feel about the corporation and its management and owners. CONTENT Introduction Trading Model International Business Managing Talent Reporting Challenges Why Company Fail? 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