Enron Scandal

Only available on StudyMode
  • Download(s) : 296
  • Published : April 22, 2013
Open Document
Text Preview
Ethics are values relating to human conduct, with respect to the rightness and wrongness of certain actions and to the goodness and badness of the motives and ends of such actions. If all people lived by this code the world would be a much better place. Having business ethics in the workplaces is very significant to having a truly successful business. Many companies have been forced to suffer losses or even forced to enter bankruptcy.

Enron is one of the biggest examples of when making business ethical decisions go wrong. An American energy, commodities, and services company based in Houston, Texas Enron was a big deal. Employing approximately 20,000 staff and was being one of the world’s leading electricity, natural gas, communications, and pulp and paper companies. Enron was a company on top on of the reason the fall was so drastic. Since Enron was the largest corporation contributor to the first presidential Bush campaign some people believed it to be a political conspiracy. The people in charge of Enron you can say lost their way, they became more worried about the money instead of the wellbeing of their company and employees. If Enron had stayed in the gray areas or at least the moral minimum then thing might have turned out different for them. Staying in these areas they would have made sure that all there business dealing was in compliance with the law. However just because a business deal is in compliance with the law does not mean it is ethical. Enron is the largest bankruptcy reorganization in American history and also the biggest audit failure of that time. With the using of accounting loopholes, special purpose entities, and poor financial reporting, Enron was able to hide billions in debt from failed deals and projects. Many executives at Enron were indicted for a variety of charges and were later sentenced to prison. Employees and shareholders received limited returns in lawsuits, despite losing billions in pensions and stock prices....
tracking img