Unethical Business Research
Corrie Johnson Res/351 December 23,2013 David Dean Gualco
Enron was among the largest trading firms in the area of energy, communication, and natural gas in the nation. Ken Lay originated it in 1985 in Houston, Texas with the intention of liberating businessmen from government regimentation. However, Enron leaders set the wrong tone by not establishing an ethical committee to monitor the decisions of the company, who would also be in charge of the hiring process and the research of members, to employ people with strong ethical standards. Also, an ethics committee would also monitor financial administration of the company. Financial areas of a company must connote ethical order to avoid unethical practices from occurring. After merging Houston Natural Gas, the growth was on the rise to an empire. Portions of the country gas and power were Enron. By 1995 Enron was succeeding with providing power and gas throughout the country, transforming the company to an unimaginative regulated business to a cutting edge innovative energy trading post. Enron thriving company was a force made for the company to change their mantra from “ to become the world’s first natural gas major” to the world’s leading energy company”, implementing a tone with a reputation of having a culture of arrogance that led people to believe that they could handle large amount of risk with out engaging any danger.
The Enron downfall is a tale of arrogance, greed, and grossly unethical behavior along with bad hiring decisions. Jeffery Skilling became an employee of Enron to develop a team of executives that can navigate their way around the fraudulent records of finances. Meanwhile, their main goal was to grossly overestimate profits to maneuver hundreds of thousands of dollars of debt off the books to navigate stock prices up. Then more than 25 executives sold off billion dollars of their stock before the company finds out what hit them. The CEO and Director embezzled an ample amount of money from employees, consumers, and investors. Which in return ultimately is the ultimate cause for the company to go bankrupt. Enron executive performance is unethical in all aspects to gain a profit, destroying, consumers, stakeholders, and the company. As a result of the scandal, changes were made and the General Accepted Accounting Principle was innovated to prevent these types of unethical accounting practices to happen in the future with other companies. While consumers and stakeholders are beginning to understand the importance of verification, validation, and authentication of corporate claims about business performance. Intelligent, responsible corporations will help this process develop and become leaders in business authenticity.
It is also a story accompanying an emphasis on decentralization were insufficient internal control of operations and finance, as well as chairman, complaint board of directors, and an impotent staff of accountants. Also, the innovation of each division and…