Enron’s Code of Ethics: An Analysis

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Enron’s Code of Ethics: An Analysis

This paper will analyze Enron’s Code of Ethics and examine the sections on values and corporate responsibility. The paper will use applicable theories and concepts and will detail Ken Lay’s view of ethics and Enron’s corporate social performance. The paper will argue that Enron was not being socially responsible to all of its stakeholders because it deceived employees and investors about its real financial status despite having stated in its company code of ethics that transparency, integrity, and respect for the law would be the cornerstones of its daily operations.

Enron’s values, as stated in the 2000 code of ethics, include the following: respect for others; openness and integrity; a premium on communication; a commitment to organizational excellence; and a commitment to non-discrimination. As it pertains to corporate responsibility, Enron’s code states that it (or its representatives) will do the following: it will comply with all relevant health and safety laws. It will emphasize safe operations because the company is devoted to protecting the environment, human health and natural resources; and the company pledges to enter into productive partnerships with the communities in which Enron is a part '' partnerships geared towards creating healthy families, and geared towards making the community stronger via education and environmental stewardship (Enron, 2000, pp.5-6).

Applicable concepts and theories explain Ken Lay’s view of ethics. For one thing, the wording of the document is aspirational; it demands that people hold themselves to the highest ethical and moral level and work constructively with partners to forge better communities (for a definition of aspirational, please see Ethics Resource Center, 2009). As well, the code of ethics and it’s values-centered insofar as its ethical ideals are among the first things discussed in the code; the code of ethics also stresses sustainability because of its focus on environmental and community stewardship (for a definition of both terms, please see Ethics Resource Center, 2009).

None of the websites discussed in this paper take note of specific ethical theories when talking about what companies should do or not do. However, there are two broad ethical theories '' deontology and utilitarianism '' that can be applied.

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