Business Research Ethics Essay
Enron is perfect example of an unethical company because they deceive their loyal shareholders and their employees; they allow them to believe their investments were secured and the many was In the right direction. The shareholder had no idea that the company was deceiving them and they were not disclosing the correct Information. The would drop without any warning. In 1995, Houston Natural Gas and Interior company came together in order to gain a larger share of the natural gas transportations market.
The two companies had a natural gas pipeline that spanned over 37000 miles, 12. 1 billion worth of assets, 1 5000 employees, it made the company, the largest pipeline network in U. S. A (Decoding Enron, 2002). Now in the same year, Samuel Signage the CEO of the 2 companies step down and Kenneth Lay many and that is how Enron was born. During the early asses, Enron was the top of their game but they were involved in unethical behavior. Enron were running a Opinion scheme designed to enrich the top executive and defraud the stockholders (Decoding Enron, 2002).
In October 2001, Enron scandal eventually led to bankruptcy but during 1995, they had a profit grossed from 9 billion
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The senior executives believe that Enron had to be the best at what they did but without taking into account risk, they were getting themselves into and also of their employees (Lie, Y. 2010). They failed to protect the reputations of their company and secure Jobs for their own employees. The CEO never disclosed any information to the employees about how the company was doing and weather stocks were going up on down. Before the company was going downhill, the CEO started selling his shares without any disclosure to anyone (Lie, Y. 010). There were many roles in the company that were not being conducted in an ethical manner and management was no exception. Arthur Andersen was the auditor and consultant to Enron but while investigations they found that, they were spinning off various assets without any disclosure to their employees or to their shareholder (L’, Y. 2010). Andersen reputation went downhill as they reviled his role in Enron collapse. They had filed a chapter 11 during the bankruptcy, so that they would be protected room creditors.
In conclusion, an organization has to be accountable for their actions and risks they put their organization. The company did not protect their reputations as a business and failed to disclose their information to their employees and shareholder (L’, Y. 2010). The company saw their downfall, they did not attempt to fix their errors, and they not inform their employees of where the company stood. Enron did not have any business ethics and did not serve their employees, manager, and shareholder because they did not release any information to them (L’, Y. 2010).