Business Ethics

Business Ethics

Introduction

A large corporate generate a scandal, the Enron involves both illegal and unethical activities and the court determine civil and criminal liabilities to persuade accrues of perpetrators. The negligence relates with managerial activity is one the main reason that uproot the financial problem of Enron financial and legal problems. Things are dishearten for nothing that the main reason for the downfall of these corporate giants is not more than selfish behaviors of the organization Chief Executive Officers (Arnold & Lange, 2004). They induced by the bacteria which is infected with the fast pace to the entire organization with their improper steering. There is always being probability of misused of power in the business environment by the actions of different employees of the company. The downfall of companies like Enron is one rare cases of the unethically uses of power which should look closely by the distraction of breaches. (Arnold & Lange, 2004)

The ethics and codes were based on respect, communication, integrity and excellence and communication. Enron's ethics code was describe the following values for his organization.

Respect: there is no tolerance, abusiveness, and disobeying treatment in the Enron Corporation. Ruthlessness, callousness should not belong to this company.

Integrity: There is a need of openness, honestly and sincerity with the customer will require.

Communication: Communication is the key element for the organization. They believe in properly inform people who moves in the organization.

Excellence: They are satisfied to raise the bar for everyone; there is sheer fun for discovering the good job at Enron Corp.

The code of conduct which is implementing by the Ken Lay's to business ethics how would Enron collapsed dramatically? The reason the failure of combination among top leadership that supported corporate culture unethical behavior, the complicity of investment banking community was another reason.

Discussion

Top Leadership at Enron Corporation

Andrew Fastow, Jeff Skilling, and Ken Lay are the top level executives whom are noticed for the reason of collapse Enron Corporation Andrew Fastow was the former Enron chief financial officer (CFO) who faced many laundering, fraud and conspiracy issues he connected. Jeff skilling was indicated for making fraud on financial reports and insider trading. Ken lay was held 11 criminal count of fraud and indulged for misleading the statement. Executives of Enron were charged for the bankruptcy, criminal's acts, insider trading and laundering. The activities of Fastow, Lay and Skilling have rises about to closely adhere the values of their ethics (Petrick and Scherer, 2003). Fastow engaged is the several activities that challenge the values of foundation of the company and their code of ethics. In December 2001, one of the largest corporation in the united states and produced the second largest bankruptcy in the history of U.S, congressional committees are perusing enquires and more than thirty Enron-related bills have introduced for the scandal problem, the full extension of collateral damage have been a wide range Enron stake holders has not yet determined. The former Chief executives officer of Enron corporation like Jeffery K. Skilling and Ex Enron CFO Andrew ...