Enron Ethical Dilemmas

Good Essays
1. The fall of Enron is mainly cause by the leaders which act unethically to their company. One of the big factors for the collapse of Enron is self-interest. Leaders in Enron only care about their own interest instead of their company and employees. Basically they ignore what would bring the pros to their company yet only pay attention to their own benefits. Greedy mind made them lost their interest in working and bring the company to another next top level and also led them to act unethically. Decision made by their leaders did not benefit the company but only themselves is also the factors that led to the failure of Enron.
The leaders also loan from their subsidiaries company without thinking to return it and traded in company stock worth millions dollars with the help of insider information. Some of the federal tax payment also been avoided even though some tax payment were collected from their subsidiaries customer. The
…show more content…
They are the market maker for the natural gas derivatives since the federal policies limited the natural gas regulatory constraints to avoid the economic issues happened in the past 1970. Jeffrey Skillng proposes to the CEO Kenneth Lay that they need a gas bank during the era of deregulation and also risk management for their customer. This is counted as a part of Firm of Endearment too since they don’t really care about the profit but more to solving problem with care. This is a good act to their company and there goes the rise of Enron in the late 1980s and early 1990s.
After that, they join in other aspect of the energy market to fully exploit what Skilling said as an “asset light”. Enron was able to learn more regarding the operational feature of different market and prevent from market price dynamics since they learned how to operate well and collected tons of information. All these carried them to their so call successful company during that era in the

Related Documents

  • Decent Essays

    There was no consistency in the selection process of how to downsize, the way in which the downsizing happened was not fair across offices, or in the way the elimination process was thought out in the first round of layoffs. Lauder made the decision to downsize based on the organization having too many offices and not for economic reasons. The downsizing did not improve the company’s long term financial health because there had to be a second round of layoffs for that very reason. . He should have reevaluated the closing of the Vail office because it was the office that was making the most profit and had the opportunity of eventually bringing back the top client.…

    • 1873 Words
    • 7 Pages
    Decent Essays
  • Decent Essays

    Use Of Labour At Walmart

    • 901 Words
    • 4 Pages

    However, of course there is union therefore, this will not happen to them. However, the hiring process of the company is to get rid of the union’s sympathizers, but if something happens in the store then the headquarter will send out a anti-union team to fix it. Without the union then the company can do more thing that will only benefit the company and not the people who work there. The people who are hired with have no sympathize and won’t care about what the company do to the workers. Another example is that the worker’s right have been violated by the company.…

    • 901 Words
    • 4 Pages
    Decent Essays
  • Decent Essays

    The fact that company allowed and promoted to their clients a portfolio they believed would fail, and did not share this information with their clients pose a question mark on the ethical aspect of its behaviour. The banking sector is considered to play a key role in economic development. It helps to translate someone’s savings into someone’s investment. Thus, the money involved in the Abacus deal, i.e., the money put in by Paulson, IKB and ICA should have been invested further to spread the benefits across all parties that were involved. But the deal only focussed on benefitting Paulson and everyone else was left empty handed.…

    • 881 Words
    • 4 Pages
    Decent Essays
  • Decent Essays

    What Is AIG Ethical?

    • 816 Words
    • 4 Pages

    The company came into extremely bad times and were about to file bankruptcy, but the government bailed them out. The company should have used the money to clean up the mess they made, but instead gave themselves bonuses and threw elaborate parties. The government did not put any regulation on how they were to use this money, which led to the misuse of it. The government had to bail them out because to many other institutions would have went down with them. AIG abused the trust of its investors, stakeholders, and employees making it the biggest scandal ever because it had to be saved by the government or it would have caused an economic depression.…

    • 816 Words
    • 4 Pages
    Decent Essays
  • Decent Essays

    From the time they started issuing the bribes, they knew they are doing something unlawful. Consequently, although the theory would support the idea that they may have harmed people in order to maximize profit and expand its business, individualism concept will not support them in this case because they achieved profits through illegal practices. On the other hand, these bribes did not only harm people of the communities but it as well has a negative impact on the company 's image. Being that Wal-Mart is among the largest corporation across the globe, this scandal will not only affect the de-Mexico subsidiary, but also all companies across the globe. Therefore, the profit maximization theory would argue that it is a horrible choice to pay off their way, as they will lose the profit.…

    • 1615 Words
    • 7 Pages
    Decent Essays
  • Decent Essays

    Instead of stating what he wants to see changed, he shames corporations that he believes exploit Americans. Moore’s failure to address what he believes needs to be changed does not help prove his arguments and instead makes him seem less devoted to the problem and as a result, less credible. Similarly in the way Moore talks to spouses of dead peasants, he also talks about derivatives to validate his reasoning. When Moore asks experts what derivatives are they all fail to explain it. From what I saw in the film derivatives were portrayed as immoral gambling in which investors can bet…

    • 734 Words
    • 3 Pages
    Decent Essays
  • Decent Essays

    He does not account for all the charges that would be incurred to fulfil the contract. He seems to be blinded by the huge amount of the contract and made the contract before it was discovered by the sales team manager that the margin was thin and the contract would lead to a negative expenditure with minimal or no profit after the contract would be completed. He violates the requirement of this code which requires granting of equal and fair considerations of competitive suppliers. That is exhibited by the fact that Jim uses the pricing list of the competitors’ previous contract to undercut the contract bid and hence ‘deny’ the ElectroSource the opportunity for the contract since the bid was lower than what ElectroSource company…

    • 1140 Words
    • 5 Pages
    Decent Essays
  • Decent Essays

    Clearly, we missed the mark and apologize. We did not intend to make light of any serious issue. We are pulling the content and halting any further rollout. We also apologize for putting Kendall Jenner in this position.”A business should always be very mindful that they are not appropriating in their advertising to the public. The public was offended by the manipulative tactics used by the corporation in efforts to profit from social injustice.…

    • 808 Words
    • 4 Pages
    Decent Essays
  • Decent Essays

    Threats: With the recent scandal, Wells Fargo are beginning to lose their customer base; customers are shutting out their Wells Fargo’s account and purchasing to other competitor’s brand. According to the SWOT analysis listed above, Wells Fargo has established a good brand name in the financial industry; although they have low customer satisfaction, they can have the ability to expand in other parts of the world. Problem Statement In striving to keep increasing the bank’s revenue, Wells Fargo & Company’s management subjected its employees to unjustified demands in meeting unrealistic sales targets, which resulted in unethical behaviors by the employees that affected…

    • 2080 Words
    • 9 Pages
    Decent Essays
  • Decent Essays

    Ethical Behaviors

    • 1527 Words
    • 7 Pages

    Many considered the bailouts as every cool and wrong because it said a bad precedent for the government. Much of the problem stems from AGI 's incentive program and culture that placed a high expectation for results on executives while not placing much responsibility on them. This is why employees at AGI Took large risks in order for my returns yet they did not bear the consequences when the decisions were wrong or unethical. Instead, they were bailed out by the US government. Outside auditors raised concerns about the evaluations of the derivatives that AIG supplied them and however the executives of AGI at the time assured investors and auditors that AGI ad correctly identified their evaluations were correct.…

    • 1527 Words
    • 7 Pages
    Decent Essays