Business Ethics : Enron, The Most Innovative And Admired American Company

831 Words Jun 6th, 2016 4 Pages
Introduction Knowing the basic fundamentals of business ethics have become increasingly important to companies today. Doing what is ethical can make a company successful just as operating unethically can tear the company down. Companies are beginning to spend more time and resources on ensuring that the business has a good moral base, while others seem to do the latter. Enron is a good example of a company that operated in an unethical manner and the results of it were catastrophic.
Enron began in the late 1980’s as a result of a merger of two natural gas companies Houston Natural Gas and InterNorth. The press named Enron as the most innovative and admired American company and selected its board as one of the five best in 2000 (Conrad, 2010). The scandal began when the natural gas industry was deregulated by the government. The deregulation allowed business executives full control over how the business operated, to include reporting financial gains to both stockholders and employees. CEO Kenneth Lay no longer had any checks and balances in place and was free to run the business as he saw fit. Unfortunately, the CEO chose to run the business in an unethical manner. There were many ethical virtues that were stake, three major infractions were Integrity, self-control, and fairness. There were many instances where the company violated these ethics virtues. Integrity
In business, companies have the responsibility to do what is right. There are many companies that build…

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