The Impact Of Ethics On The Enron Corporation Essay

Ethics is something that is very important to have especially in the business world. Ethics is the unwritten laws or rules defined by human nature; ethics is something people encounter as a child learning the differences between right and wrong. In 2001, Enron was the fifth largest company on the Fortune 500. Enron was also the market leader in energy production, distribution, and trading. However, Enrons unethical accounting practices have left the company in joint chapter 11 bankruptcy. This bankruptcy has caused many problems among many individuals. Enrons employees and retirees are suffering because of the bankruptcy. Wall Street and investors have taken a major downturn do to the companys unethical practices. Enrons competitors†¦show more content†¦Those same 25 executives announcing the layoffs had just one week earlier paid themselves retention bonuses of $55 million (Diekmann, 2005). These employees did not show or use ethical business conduct by making sure they the mselves received pay; they are just as guilty as the top executives involved with the accounting scandals. Wall Street Wall Street can have a heavy influence on a company such as Enrons ethical standings. During the Enron debacle, Wall Street played a key role in the decision-making process for the leadership team of Enron. Wall Street roles in determining Enrons overall value as the company influenced Enron to push the boundaries of ethical standards. During the trial of Enrons executives former Internet division chief of Enron Ken Rice testified: That he and his co-conspirators chose to lie about their networks capabilities to gain credibility on Wall Street and boost Enrons stock value. (Flood, 2005) Enrons decision to inflate their values to Wall Street did exactly what the company executives wanted and the companys stock value skyrocketed. Wall Street obediently obliged, inflating Enrons share value by as much as 75% from the time the company started bragging about its prospects. (Lashinsky, 2001) When Enrons bubble finally burst andShow MoreRelatedThe Impact of Ethics on the Enron C orporation2018 Words   |  9 PagesEthics is something that is very important to have especially in the business world. Ethics is the unwritten laws or rules defined by human nature; ethics is something people encounter as a child learning the differences between right and wrong. In 2001, Enron was the fifth largest company on the Fortune 500. Enron was also the market leader in energy production, distribution, and trading. However, Enron s unethical accounting practices have left the company in joint chapter 11 bankruptcy. 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