Homework Question on Business Ethics In Enron Company
- Explain on one page the importance of business Ethics and the other page an argument on the same.
- Focus on Enron Corporation scandal
Homework Answer on Business Ethics In Enron Company
For any business, there are the written regulations and a general code of conduct. There are the professional ethics that give guidance on the morality and any ethical problem that may rise in any business environment.In the business environment, ethics entails knowing to differentiate between what is wrong and what is right and choosing to do what is right.Regarding business ethics, my main focus is going to be directed to Enron Corporation scandal.During the early 1990s, the corporation started selling electricity at market prices, and soon after, the United States Congress deregulated the sale of natural gas through a legislation act.
The approved regulation ensured that Enron Corporation were able to sell energy competitively at high prices, therefore, leading to an increase in its revenues.Justin Schultzonce said character matters in people as well as in organizations.The global business community is now learning from the company’s failure. This failure represents the biggest business bankruptcy ever which in equal measure spotlights their moral decay and failure. It is a mark which forever will be a reminder of the consequences of falling into ill temptations by the leaders of Corporations or companies and putting emphasis on those who sought excess at the expense of their country,taxpayers,and their employees.
At the end of the day, the moral decadence caused the company’s fall which eventually caused its direct beneficiaries like the shareholders and pensioners to suffer.Corruption was the main unethical practice that eventually brought down the company. Following the story of Enron, we can clearly see that it lacked accountability and transparency. Its top executives and their accountants cheated their stockholders into believing that the company was doing well and possibly committed economic fraud.