Enron ethical analysis

Journal Of Business Ethics, 45 3 How do those who work in and with this company feel about it? An organization is not an individual but a collection of individuals working towards a common goal. A Compromise of Ethics?. On the other hand, Utilitarianism justifies actions if cost is less than the greatest improvement to well being for the most number of individuals.

Among these lessons are: A CEO is also supposed to care for the people who work for him by giving them job security and benefits, but Kenneth Lay ultimately failed in this area as well since his inaction ended up costing most of them their jobs and pension funds invested in company stock.

Executive management may have rationalized their decisions as serving the best interest of the company but it is clear that their motives were not aimed exclusively towards benefiting the organization.

It was the fault of those who forced her to take the story outside of the company. However, given the corporate culture and long-term business relationship, a partner rotation would have little or no impact, as the scale of fraud involvement was widespread Enron: The Smartest Guys in The Room Overall, it has been shown that Arthur Anderson exercised a clear lack of professional independence in its dealing with Enron.

This stage demonstrates clear independence of social conformity, authority or external encouragement, and shows individuals that are prepared to challenge social norms, laws or figures of power in an effort to accomplish a positive result for the greater good.

This improves the independence of Auditors as it safeguards them from potential legal disputes. Corporate responsibility is to the people they serve and not to their checkbooks although the Enron situation seems to contradict.

How can credibility be recovered with investors?

An Ethical Analysis of the Enron Scandal

In addition to a lack of internal control, Arthur Anderson failed to maintain professional independence through a lack of corporate governance and a failure to uphold an appropriate code of ethics.

Government regulations and rules need to be updated for the new economy, not relaxed and eliminated More essays like this: In the process, they appeared to make Enron very innovative and very profitable.

Among them are the conflict of interest between the two roles played by Arthur Andersen, as auditor but also as consultant to Enron; the lack of attention shown by members of the Enron board of directors to the off-books financial entities with which Enron did business; and the lack of truthfulness by management about the health of the company and its business operations.

An Ethical Analysis of the Enron Scandal

Through the use of Simardeep Sran ID: In conclusion, I find that the actions of Kenneth Lay and Jeffrey Skilling were clearly unethical and not justified by need.

Did Arthur Andersen maintain its professional independence in its dealings with Enron, why or why not?Keywords: Enron scandal, Accounting fraud, Moral responsibility, Analysis 1. Review of Enron’s Rise and Fall Throughout the late s. Enron Ethics - A Comprehensive Analysis. The events that lead to the collapse of Enron can be investigated using the ethical frameworks suggested by the two.

An Ethical Analysis of the Enron Scandal The Enron scandal is one that left a deep and ugly scar on the face of modern business.

As a result of the scandal, thousands of people lost their jobs. ENRON Ethics Case Analysis Prepared By: Simardeep Sran – Due: September 12, Unit: MAA – Professional Ethics and Governance Q1: Analyse the corporate culture at Enron and its management’s behaviour.

An Ethical Analysis of the Enron Scandal The Enron scandal is one that left a deep and ugly scar on the face of modern business.

As a result of the scandal, thousands of people lost their jobs, some people lost their entire pensions, and all of the shareholders lost the money that they had invested in the corporation after it went bankrupt. Business ethics and corporate governance Assignment“An ethical analysis of the ENRON scandal and learning’s from it.” Submitted by-:Saurabh SinghEnrollment No.

Enron ethical analysis
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