Enron Ethics Analysis

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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
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After the fall of Enron their lack of integrity was exposed to the public. During the companies’ tenure there were multiple instances where they lacked integrity in business practices. After Enron was exposed he company lack of integrity grew increasing worse during its tenure. Falsifying financial record was one of the costly display of the companies lack of integrity. In the beginning Enron was praised for their great success and forward thinking. This crated a buzz for the company and other businesses gravitated toward them. Enron executives didn’t want to lose their reputation. According to authors Sims and Brickmann, “Enron entered into a deceiving web of partnerships and employed increasingly questionable accounting methods to maintain its investment-grade status” (2003, p3). Creating the image that the company was profitable than it really proved to be detrimental to the company itself, as well as the shareholders and employees

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