#1. Based on what you read in this chapter, summarize in one page or less how you would explain Enron’s ethical meltdown. Ethics refers to “the principles of conduct governing an individual or a group; specifically, the standards you use to decide what your conduct should be (Dessler, 2011). ” Secondly ethical decisions always involve questions or morality (Dessler, 2011). Anyone that had anything to do with the meltdown at Enron had no ethical standards. Enron had a lack of accounting transparency, which enabled the company’s managers to make their financials look much better than they actually were.
I believe that Kenneth Lay got rid of several million shares of Enron stock and made over a billion dollars. While the Enron employees lost their jobs, the money in their pensio
...n funds as well as any money they invested into the company. Not only did Enron damage the lives of their employees, but they also affected the customers that were buying their products, and the outside investors who lost a significant amount of their money. This all happened because of the unethical behavior and greed of those individuals involved in the meltdown.
Even today there are greedy people out there that would do anything for money. They would not care if they had to lie, cheat, break the law, and ruin the lives of the people who stand in their way. But what can be done to stop them? As stated in the case by the executive director of the Ethics Officer Association, You can’t write enough laws to tell us what to do at all times every day of the week in every part of the world
(Dessler, 2011). #3. This case and chapter both had something to say about how organizational culture influences ethical behavior.
What role do you think culture played at Enron? Give five specific examples of things Enron’s CEO could have done to create a healthy ethical culture. The most persuasive explanation of how an apparently ethical company could go so wrong concerns organization culture (Dessler, 2011). The reasoning here is that it’s not the rules but what employees feel they should do that determines ethical behavior (Dessler, 2011). We can define organizational culture as the “characteristic values, traditions, and behaviors a company’s employees share (Dessler, 2011). ”
I believe that culture played a role in how the employees acted during the entire meltdown. The firm’s culture should send clean signals about what is and isn’t acceptable behavior. At Enron it seemed that it was acceptable to lie, and cheat and let everyone fall in the end as long as the bad guy came on top. Enron’s CEO could have done several things to create a healthy ethical culture. First he could have clarified the expectations that he had of his employees. He needed to make clear the expectations with respect to the value he thought was critical.
Second he needed to walk the talk. Employees take their signals from the boss’ actions (Dessler, 2011). They can’t say, “Don’t fudge the financials,” and then do so themselves (Dessler, 2011). Third the CEO needs to provide physical support by sending the signals regarding what employees should and should not do. Forth he should train his employees the ethically right way to do things. And lastly he should put into affect a whistleblower
policy, this will help reduce employer unethical behaviors.
- Values of Life essays
- Ethical dilemma essays
- Normative Ethics essays
- Virtue Ethics essays
- Belief essays
- Deontology essays
- Moral essays
- Virtue essays
- Work Ethic essays
- Adidas essays
- Amazon essays
- Apple essays
- Bmw essays
- British Airways essays
- Burger King essays
- Coca-Cola essays
- Company essays
- Costco essays
- Dell essays
- Ebay essays
- Enron essays
- Facebook essays
- Ford Motor Company essays
- Gap essays
- General Motors essays
- Google essays
- Honda essays
- Ibm essays
- Ikea essays
- Intel essays
- Iphone essays
- Johnson and Johnson essays
- Kellogg essays
- Key essays
- Kfc essays
- Mcdonald's essays
- Microsoft essays
- Myspace essays
- Nestle essays
- Netflix essays
- Nike essays
- Nokia essays
- Pepsi essays
- Pepsico essays
- Red Bull essays
- Ryanair essays
- Samsung essays
- Sony essays
- Southwest Airlines essays
- Starbucks essays