The Downfall of Enron

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Recommended: Business ethics practices

Ethical behavior, in a general sense, is a definition of moral behavior in regards to lawfulness, societal standards, and things of that nature. In the business world, ethics commonly refer to acceptable and unacceptable business practices within the workplace, and all other related environments. The acceptance of colleges regardless of ethnicity, gender, and beliefs, as well as truthfulness and honesty in relation to finances within the company are examples of ideal ethical business conducts. Unethical business behavior would include manipulating procedures based on bias or discrimination, engaging in activities that promote political gain, as well as blatant fabrication of monetary factors within the company and “can affect organizational performance and is costly to employers, employees, shareholders, and other organizational stakeholders” (Cox 263). When a corporation practices proper ethics, it is representing not only itself in a positive manner, but its partners, shareholders, and clients as well. On the other hand, when an organization partakes in unethical activities, all parties are negatively affected. The collapse of Enron is a major case of unethical conduct in the corporate world, because the circumstances surrounding the firm’s chaotic plunge where so scandalous that it left “creditors wrangling over Enron's skeletal remains” (Helyar) long after the company had seen its demise. There are numerous instances to be mentioned, including deliberate failure to properly report fiscal losses, insider trading, and overall relentlessness. The inclusive purpose of this paper is to further explore the underlining factors that contributed to the downfall of the once powerful Enron, and how a new way of approaching business ethi... ... middle of paper ... ...means of truly learning from history and applying such experiences, the business world will be able to strive to not witness another unethical calamity, such as Enron. Works Cited Catanach Jr., A.H., & Ketz, J.E. (2012). ENRON Ten Years Later: Lessons to Remember. CPA Journal, 82(5), 16-23. Cox, P.L., Edwards, A., & Friedman, B.A. (2009). Enron: The Smartest Guys in the Room – Using the Enron Film to Examine Student Attitudes towards Business Ethics. Journal of Behavioral & Applied Management, 10(2), 263-290 Fusaro, P.C., & Miller, R.M. (2002). What Went Wrong At Enron: Everyone’s Guide to the Largest Bankruptcy in U.S. History. Hoboken, NJ: J. Wiley. Helyar, J., Mclean, B., Revell, J., Sung, J., & Varchaver, N. (2001). Why Enron Went Bust. Fortune, 144(13), 58-68. Probert, Lauren J. "Enron." Salem Press Encyclopedia (2013): Research Starters. Web. 19 Apr. 2014.

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