Essays on Enron Corporate Fraud and Corruption - Organizational Ethics Issue Resolution Case Study

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The paper 'Enron Corporate Fraud and Corruption - Organizational Ethics Issue Resolution" is a good example of a business case study.   In business, ethics is always a big deal. Without ethics, no business can pursue peace and mutuality between the businessman and the client and even inside the workplace. Just like in all other things, when ethics is badly hurt, many suffer and get affected. It may lead to misunderstandings, dilemmas and other unwanted incidences in the workplace. Encompassed in the term ethics are several virtues which every workplace should observe and value.

Honesty, integrity, accountability and veracity- these are but few of the essential virtues which help maintain and strengthen a certain workforce. These values are inseparable and therefore, one cannot exist without another. They exist interdependently and it certainly takes a lot to observe these things. The moment none of these things are achieved, then the business is in for a ride down the pinnacle. One concrete issue wherein this can be exemplified is that which concerns the huge energy company ENRON. THE ISSUE AT HAND ENRON is a Houston-based energy company which housed about 21 000 employees before applying for bankruptcy last November 2001 (SourceWatch, 2007).

It came to be known as the seventh-largest US company holding hundreds of assets and businesses which range from communication, computers, oil and many other commodities which are of the essence to certain land. This probably made ENRON a sought-after company. ENRON fell on the cliff of bankruptcy because of a certain organized and systematic accounting fraud. This fraud revealed the under-the-table procedures and wrongdoings which not only involved businessmen but even politicians. The plunge of ENRON to bankruptcy became the greatest catastrophe in the financial and business world (SourceWatch, 2007). ANALYSIS OF THE PROBLEM Enron has become the most analyzed business case in the history of the financial world (Boje and Rosile, 2002).

The controversy of Enron is selling like pancakes. Many times the people concerned for the downfall talked to the press, gave their testimonies, stated their opinions- yet, there is still no clear person to blame. One side of the story blames it to the Chief Financial Officer Andrew Fastow who also involved some of his personnel who allegedly created off-the-balance-sheet transactions to avoid Enron’ s downfall and to create a successful look amidst the nearing fall of the company. Creating a wider web of turmoil, Fastow further blamed his bosses who were Lay and Skilling.

These two Board of Directors were pointed by Fastow and claimed that his bosses were the one who gave him acquiescence in doing things which he deemed forthright for the company per se. As the hole widens, more and more persons become the center of attention and controversy. Another angle of the story is quasi-external to the company- the Arthur Andersen Accounting Firm which does the transactions of all financial ties for Enron.

The certain firm acts as the consultant and auditing firm of the company and therefore is so capable of under-the-table transactions in one snap. This blaming process and finger-pointing issue reached even the white house, blaming even the US Presidents for the downfall of the previously rich company.

REFERENCES

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Boje, David and Rosile, Grace Ann. (2002). ENRON Whodunit?. Retrieved 14 September 2007 from

Brinkmann, Johannes and Sims, Ronald. (2003). Enron Ethics (Or: Culture Matters More than Codes). Retrieved 16 September 2007 from

Papoutsy, Christos. (2006). Ethics of US and World Stock Markets. Retrieved 13 September 2007 from

businessethicscolloguium.html>

SourceWatch. (2007). ENRON Corporation. Retrieved 13 September 2007 from

< http://www.sourcewatch.org/index.php?title=Enron>

Wheat, Andrew. (2002). System Failure, Deregulation, Political Corruption, Corporate Fraud and the Enron Debacle. Retrieved 15 September 2007 from

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