Enrons Ethics Code Of Enron - 1552 Words

Abstracts Enron was once one of the largest companies in the world. After many years of using diverse accounting tricks, they finally had to file bankruptcy in December 2001 due to not being able to hide billions in debt. The top 140 executives got paid 680 million in 2001. (CNN Library, 2015). Kenneth Lay as the founder of Enron and Jeffrey Skilling as the chief executive were both convicted in 2006. (Weiss, 2009, p.28). Thousands of workers were left with valueless stock in their pensions which literally means they lost their life savings. This article focuses on Enron’s ethics code, Enron’s failure of top leadership, Enron’s corporate culture and Enron’s complicity. On the other hand, I will discuss the lessons I learnt from Enron case. Keywords: Enron’s ethics code, Enron’s failure of top leadership, Enron’s corporate culture, Enron’s complicity, lessons learnt from Enron case Enron’s ethics code Respect, integrity, communication and excellence are the ethics code of Enron. These four aspects have a crucial impact on business ethics. â€Å"Ethics requires respect. One cannot exist without the other. Ethical success depends on understanding the profound impact that respect has on your ethics and character.† As Mark S. Putnam said in his article â€Å"Respect: The Starting Point for Good Ethics†(2003), we need to make respect our obligation and show everyone a certain degree of respect. All the top executives did not show respect to the low level employees. The only thingShow MoreRelatedEnron s Ethics Code Of Enron Essay943 Words   |  4 PagesAbstracts Enron was once one of the largest companies in the world. After many years of using diverse accounting tricks, they finally had to file bankruptcy in December 2001 due to not being able to hide billions in debt. The top 140 executives got paid 680 million in 2001. (CNN Library, 2015). Kenneth Lay as the founder of Enron and Jeffrey Skilling as the chief executive were both convicted in 2006. (Weiss, 2009, p.28). Thousands of workers were left with valueless stock in their pensions whichRead MoreInternal Checks And Balance System Essay1414 Words   |  6 PagesInternal checks and balance system are used to prevent company from mistakes. However, Enron’s internal checks and balances system were fail to prevent its from demise because its external auditors were provide service to help Enron to cover the loopholes, internal accountants were violate accounting rules in several of off-balance sheet and the lawyers did not provide fair reports because of conflict of interest. First, as an external auditor, Andersen was help to conceal the false statements ratherRead MoreThe Ethics Code Of Enron1586 Words   |  7 PagesEnron’s ethics code Respect, integrity, communication and excellence are the ethics code of Enron. These four aspects have a crucial impact on business ethics. â€Å"Ethics requires respect. One cannot exist without the other. Ethical success depends on understanding the profound impact that respect has on your ethics and character.† As Mark S. Putnam said in his article â€Å"Respect: The Starting Point for Good Ethics†(2003), we need to make respect our obligation and show everyone a certain degree of respectRead MoreThe Reprehensible Story Of The Enron Corporation1680 Words   |  7 Pagesreprehensible story of the Enron Corporation’s rapid rise to success followed by their consequential disgraceful fall is one that has captivated the attention of the public for more than a decade. Not only was this scandal highlighted largely due to the widespread publication of the Enron Corp’s actions in the newspapers and television but must notably their substantial contradictory ac tions against not only basic ethics but Enron’s published Code of Ethics. Outlining the reputation of Enron, Kenneth Lay, ChairmanRead MoreEnron: What Caused the Ethical Collapse?882 Words   |  4 PagesKenneth Lay, former chairman and chief executive officer (CEO) of Enron Corp., claimed to be a moral and ethical leader and exhorted Enron’s officers and employees to be highly ethical in their decisions and actions. In addition, the Enron Code of Ethics specified that â€Å"An employee shall not conduct himself or herself in a manner which directly or indirectly would be detrimental to the best interests of the Company or in a manner which would bring to the employee financial gain separately derivedRead MoreEnrons Business Failure Paper986 Words   |  4 PagesEnron Business Failure Paper Abstract The following paper will explain the reason of why Enron as a company failed. It will compare and contrast the contributions of leadership, management and organizational structures to the failure. Enron, was the worlds top electrical, communications, pulp and paper, and natural gas company. Unfortunately, in late 2001 the company started to unravel. Enron was on the brink of bankruptcy and even an attempt to be bought out by a smaller company calledRead MoreEnron s Culture Project : Enron1589 Words   |  7 PagesMiranda Vehlewald Enron Ethical Culture Project Part 1: Enron’s Culture Enron started out as a dominant culture. Kenneth Lay and Jeffrey Skilling had a vision of how they wanted the company to be and where they wanted it to go. When Lay put Skilling in charge, he made it his mission to hire the best traders, recruiting them from the best schools and other companies. They gave employees corporate rewards like concierge services and a company gym. As the company grew larger, the culture began toRead MoreEnron : The Leading Factor That Had Enron Into Its Demise Essay1608 Words   |  7 Pagesleading factor that had Enron into its demise revolves around the notion that, â€Å"companies are often so concerned with appearance and damage control that they are unwilling to engage in the degree of examination required to root out the entrenched causes of trust violations† (Hurley, Gillespie, Ferrin Dietz, 2013). The historical performance of Enron’s rising share prices, coupled to the constant positive media attentions, only added fuel to the fir e in terms of Enron’s competitive culture. As aRead MoreEnron : A Model Of The Innovative Company1684 Words   |  7 PagesEnron Enron began in July 1985, and its headquarters were in Houston. It started from a small regional energy supplier. However, Enron was dissatisfied with the traditional way of doing business, so it began to look toward energy security. Enron s management believed that the creation of derivative securities market for any commodity was possible, so Enron developed energy commodity futures, options, and other financial derivatives. Energy deregulation brought this company great commercial opportunitiesRead MoreEnron : Enron And Enron Scandal Essay1269 Words   |  6 PagesEnron was one of the largest energy, commodities, and services company in the world. It was founded in 1985 and based in Huston, Texas. Before its bankruptcy on December 2, 2001, there are more than 20,000 staff and with claimed revenues nearly $101 billion during 2000. Enron was the rank 16 of Fortune 500 in 2000. In 2001 it revealed that Enron’s financial report was planned accounting fraud, known since as the Enron scandal. In the Enron scandal, Enron used fraudulent accounting practices to cover