Introduction:The study of Enron and its code of ethics is an important case. It is a case which demonstrates on a large scale the implications of violating or ignoring a code of ethics. Ethics are a written set of rules and principles a corporation or group promise to follow and guide them in their decisions. It also consists of unwritten laws or rules which can be defined as simply the difference between right and wrong.
Enron used to be the largest distributer and producer of electricity and natural gas in the country. The company was listed as the fifth largest of the fortune 500 companies. As the energy market declined at the end of the 1990's more of their financial and accounting processes came into the "limelight". This was the beginning of the end for the company and eventually filed bankrupt in 2002. Enron's failure to abide by its own and unwritten code of ethics had devastating effect on it shareholders and the economy as well.
Enron Downfall
English: Enron Complex in Houston Texas
English: Mug shot of Kenneth Lay.Although legislation such as the Sarbanes-Oxley act has been enacted since then to hopefully deter this from happening in the future, following a code of ethics still essential.
It is not that Enron did not have a code of ethics, it is that they chose not to abide by them. Enron's code of ethics was a very well written and covered multiple subjects. It states that as a corporation it has a responsibility to conduct itself in a manner that goes beyond industry, economic and cultural boundaries (Enron, July, 2000). It started with expressing their vision or goal of the company which dealt more with the environment than corporate practices.
The section on values are typical of most. Respect - We will treat others as we would like to be treated. Integrity - We...