Business Ethics Project : Business Ethics Project ENRON COMPANY SCANDAL - An Ethical Analysis
ENRON Company Background : ENRON Company Background US energy company based in Houston Texas
Employed approximately 22,000
Declared bankrupt in late 2001
Fraud was detected in the fact revealing
ENRON Scandal : ENRON Scandal Enron shares hit high prices near $90
After the fraud detection the share prices fell to $0.12
Large number of investors lost their money comprising total loss of $11 bn
ENRON Scandal : ENRON Scandal The scandal was related to misleading the public about the true condition of the company
The debts and losses of the company was hided and the revenues were shown increasing
ENRON Scandal : ENRON Scandal The chairman Mr. Ken Lay admitted that the company performance was not good at any point of time.
The accounting firm Arthur Andersen was also involved in the whole process and they are also blocked from further business.
ENRON Scandal- Descriptive Value : ENRON Scandal- Descriptive Value Changing scenario
To raise its market stake in a consecutive manner.
Showed only the profits to attract more public
Wrong approach for a public company
ENRON’s unethical behavior : ENRON’s unethical behavior The company’s act of not revealing the internal information to employees and public caused huge losses
The hiding of documents related to some transactions and debts
ENRON’s Ethical Approach : ENRON’s Ethical Approach The Enron Company did adopt the utilitarian approach
The hided and told lies to the public and employees.
The higher management pressurized executives to discover new methods to of hiding information.
Business Ethics : Business Ethics Business ethics involves set of actions that make company more favorable to public and employees.
It defines the code of conduct for employees
It makes the company activities more legal and policies more social
ENRON should have done : ENRON should have done Company could have restructured its departments.
The quality improvement strategies should have introduced.
Quality improvements would have led to decrease in losses.
ENRON should have done : ENRON should have done The quality improvements decreases the errors in misacts of the company operation
Enron should have performed better if it could have adopted dynamic strategy to overcome the changing environment and market.
THANKS : THANKS