The Enron Corporation Case Study

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The Enron Corporation was an American energy company that provided natural gas, electricity, and communications to its customers both wholesale and retail globally and in the northwestern United States (Ferrell, et al, 2013). Top executives, prestigious law firms, trusted accounting firms, the largest banks in the finance industry, the board of directors, and other high powered people, all played a part in the biggest most popular scandal that shook the faith of the American people in big business and the stock market with the demise of one of the top Fortune 500 companies that made billions of dollars through illegal and unethical gains (Ferrell, et al, 2013). Many shareholders, employees, and investors lost their entire life savings, investments,…show more content…
This culture rewarded innovation, punished and most often terminated those that were deemed as weak or unsuccessful at bringing in large financial accounts (Ferrell, et al, 2013). Through an organizational culture that focused on financial greed for self, illegal accounting practices, conflicts of interest partnerships, illegal business dealings, fraud, negligence, and massive corruption at all levels, the Enron scandal help to create new laws and regulations with stiff penalties if violated (Ferrell, et al, 2013). The federal government implemented the Sarbanes Oxley Act (SOX) (Ferrell, et al, 2013). The SOX is to restore confidence and reassurance to the American people and notice to corporate America, unethical business practices will not be tolerated (Ferrell, et al, 2013). All key players in an organization such as the top executives, lawyers, accountants, banks, board of directors, and employees all have an obligation to do the right thing and report any wrong-doings (Ferrell, et al,…show more content…
Reiterating the importance of these codes in meetings, office memos, or whenever the chance arise, are simple ways managers can get the business ethic message across to the employees (Ferrell, et al, 2009). Focusing on what is best for the organization as a whole and not self greed, not focusing on short-term profits but the long-term profit goals for the shareholders, investors, and employees would help keep employees ethical (Ferrell, et al, 2009).When an employee is fearful of losing his or her job, unethical conduct can be the result of trying to keep that job (Ferrell, et al, 2009).When pressures are placed on employees to make money quick, fast, and in a hurry, the results could be unethical behavior (Ferrell, et al,

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