Ethical Culture Of Enron Essay

An Evaluation of Ethics and the Ethical Culture of Enron.
This article provides a brief background on the event leading to the demise of Enron. Additionally, this paper will discuss the cultural elements of Enron and their relationship to unethical behavior and its effects on stakeholders. Lastly, this paper offers an analysis of ethic theory and its application to the Enron Dilemma.
Introduction and Situational Analysis
Enron, once revered as juggernaut in corporate America, fought its way to top of the industrial world. In 1985, while climbing the ladder of success, Enron began its energy industry merger with two Houston companies (Sims, 2003, p. 243). Following the merger in 1998, the massive empire known as Enron solidified its powerhouse

Placed in proper perspective, had Enron considered doing the right thing because it was the right thing to do, regardless of outcome, the company may still be in business today (Gilbert, 2012, p. 57). Obviously, in hindsight, doing the right thing may have changed the culture to one more conducive to moral values, which in turn, may have resulted in earlier reports of financial shortcomings. In reality, the company may have prevented its own demise with honest forthcoming reports that could have prevented market panic; thus, preventing the downward spiral that enviable destroyed the company. Point of fact, Enron openly espoused its affection for ethical policies but, in fact, it did not practice ethical behavior. Truly, had the company followed any ethical approach, it may have staved off its preordained destiny. A culture that rewards breaking rules is destine for failure. Though an ethical program may appear to be the solution; however, a moral culture is truly the key to winning the battle of ethics. Moreover, others have suggested that ethical programs may stifle creativity and thus prevent the free exercise of one’s values and moral judgment (Stansbury & Barry, 2007, p. 239). While a program by itself will never be successfully, leadership from the top is instrumental to victory; managers must be known for possessing core values such as honesty and integrity (Nel, Nel, & du Plessis, 2011, p. 59). Albeit, despite the best policies, the proclivities of most subordinates will always drift towards follow the examples of leadership (Mayer, Kuenzi, & Greenbaum, 2010, p. 13). Thus, like the saying goes, an ounce of example is worth a thousand words! The prevention of such needless tragedy lies not in policy or programs but rather in leadership by example. If society truly demands moral behavior within its institutions, then it must expect the same standard from its leaders. Society must demand