In addition to the ruthless evaluation systems, there was also reward systems that promoted unethical behaviour aimed at securing these rewards. The “compensation plan ‘seemed oriented toward enriching executives rather than generating profits for shareholders’ and encouraged people to break rules and inflate the value of contracts even though no actual cash was generated,” (Cengage.com, n.d.) so it is evident that the company’s focus was directed toward individual gain rather than the growth of the business and the wellbeing of investors, employees, and shareholders. More specifically, “Enron’s bonus program encouraged the use of non-standard accounting practices and the inflated valuation of deals on the company’s books, [so] deal inflation became widespread within the company as partnerships were created solely to hide losses and avoid the consequences of owning up to problems” (Cengage.com, n.d.). These types of unethical behaviour are symptoms of the overarching problem of the lack of internal controls to govern the behaviour of those in power and of a company culture that goes against the code of ethics that the company outwardly projects to its investo...
... middle of paper ...
...ndicators or red flags were “not considered warning signs because the actions [were] in line with the company’s beliefs and goals” and entrenched in their corporate culture” (Bills, n.d.). For this very reason those who should have seen these red flags, like the board of directors, did not because the “practice[s were] considered…Enron’s standard business practices” (Bills, n.d.). Furthermore, those involved in the company were either complicit in the fraud or unaware or mislead to believe that the company was operating within legal bounds and there was no point at which the company believed it should take action or responsibility for the actions of the executives aside from the resignation of the CEO in 2001. However, following concerns regarding the legitimacy of Enron’s financial position made by a whistleblower, the company was forced to take some sort of action.
Need Writing Help?
Get feedback on grammar, clarity, concision and logic instantly.Check your paper »
- Have you ever thought about why you made a purchase. Or better yet, what decisions or attributes pointed you towards that specific purchase. It could have been because the product was cheap, aesthetically appealing, or simply something you have been motivated to buy for quite some time. Dan Ariely, author of Predictably Irrational, explores how individuals behave in ways that are irrational, yet do consistently, and predictably, without even realizing it. Individual’s irrational behaviors are not random, and we repeat the same mistakes over and over again making them predictable.... [tags: Decision making, Decision theory]
1898 words (5.4 pages)
- Communication and decision making is a big part of everyday business. Fred Luthans writes, “Both communication and decision making are dynamic, personal processes relevant to the social cognitive framework and the study of organizational behavior.” (Luthans, 2011, pg. 259) Communication and decision making are tied together. A person has to be able to interpret different types of communication in order to form a proper decision. Many companies have seen the benefit of people working in teams. They have redefined a number of jobs to be a team atmosphere to solve problems and to make decisions.... [tags: Decision making, Problem solving, Idea]
1144 words (3.3 pages)
- Ethical issues are common in the field of mental health, and so mental health counselors rely heavily on sound ethical decision-making to navigate difficult decisions that affect the client’s wellbeing, law, and the counselor’s own liability. Using ethical decision-making models, counselors can make better decisions, however, there are situations where other factors outside of the counselor’s control can influence these decisions. These factors can include the education and experience of the counselor as well as their current emotions.... [tags: Ethics, Decision making, Morality]
1067 words (3 pages)
- When you increase participation in decision making it can become quite time consuming, as there are more opinions and ideas it can make it much more difficult to actually come to a conclusion. Often times when we are in the middle of a staff meeting it can become rather heated. You have several groups of associates with varied opinions on what they want to happen, as well as a few associates who just want the meeting to end so they can either go back to work or go home. Delays in decision making weaken my leadership ability directly, by taking time away from other areas in the clinic.... [tags: Leadership, Decision making, Management]
1277 words (3.6 pages)
- Many organizations take extra precautions when it comes to enforcing labor laws and rules towards having employees. Making the correct decisions can result to having long-term employees become loyal to the company. If neither of these two criteria are met, then it can result in turnover and manufacturing performance. I want to discuss and elaborate more on what it really means for organizations to integrate human resource decision making in their mythology. “The use of HRM in corporate decision-making allows employee interests and employee needs to be integrated with the goals of the organization.” (Ryan) While researching on this topic I found important information that pertains to the “dec... [tags: Decision making, Employment]
1268 words (3.6 pages)
- There is a disconnection on who influences the products purchased during grocery shopping. The parents or guardians feel as though they are in control of the situation in most circumstances, but the influence that the children have is undeniable. Grocery shopping is a common practice in most societies, but there aren’t many studies examining the decision-making process involved within the family shopping experience. Factors including income, stress, and desire to finish shopping quickly all affect the shopping experience.... [tags: Decision making, Decision theory]
1047 words (3 pages)
- Moral Management is the application or implementation of personal and societal morals/ethical codes to decision making providing the maximum moral outcome. With that there is a method for ethical decision making that is called “the Moral Compass”. This method has four lenses. First is purpose, “will this action serve worthwhile purpose”. Second is principle, “is this action consistent with relevant principles”. Third is people, “does this action respect the legitimate claims of the people likely to be affected”.... [tags: Decision making, Ethics, Cognition, Morality]
1060 words (3 pages)
- The Slenderman Prophecy When discussing the motivation that delves into an individual’s decision to commit a crime there are many different driving forces that make up the lengthy process of deciding to act on your idea. In regards to the violent crime of two young females stabbing their best friend to the brink of death, there are some theories that can help explain their thought process and actions. However, the issue with making gross generalizations in regards to the girls behavior is that each one had vastly different motivations and behaviors that led to their decision to actually go through with the crime.... [tags: Psychology, Thought, Behavior, Mind]
1324 words (3.8 pages)
- The study was qualitative in nature as it helped in understanding and giving interpretations to behaviors, emotions, beliefs, texts, talk and relationships of the individuals in the community studied. The case study design, one of the formats used in qualitative research, was used to primarily determine the potentials of participation in decision-making to demonstrate power. The ability to describe and explain in detail aspects of processes in a social unit in their real social context is the main reason why this research adopted the case study design (Feliciano, 1994).... [tags: Analysis, Dahl, Decision Approach]
729 words (2.1 pages)
- Tactical decision making is becoming much more prominent with the renewed stress on ethics and ethical behavior, especially in the world of accounting. Corporate ethics are taking center stage within the business world due to the various accounting scandals and their consequences. Some examples of these scandals include Worldcom, MCI, Enron, and Arthur Andersen. Since these incidents took place, the government has implemented various new regulations that are designed to deter and prevent fraud and unethical behavior, but it is up to the corporations themselves to think tactically and base their operational decisions on specific ethical tactics.... [tags: ethical behavior, corporate ethics]
1863 words (5.3 pages)