The Pros And Cons Of The Enron Corporation

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In many Universities today it is mandatory to take an ethics class. This is not to provide students with an ethical behavior but to provide education of companies that have found themselves in ethical predicaments and how they dealt with them. One of the most recent ethical issues that have taken place would be the Enron collapse. The Enron Corporation was founded in 1985 out of Houston, Texas and was one of the world 's major electricity, natural gas, communications, and pulp and paper companies that employed over 20,000 employees. With the help from Arthur Andersen the outside accounting firm and Vinson & Elkins Enron’s law firm, these three companies participated in an unethical practice that is still being dealt with today. This paper will …show more content…

Many individuals only seeking to promote their own well-being over any legal or ethical boundaries did this. This was not only isolated with the Enron Corporation, as Arthur Andersen the outside accounting firm and Vinson & Elkins Enron’s law firm were also participants. The key players that led to the collapse of Enron was the founder Kenneth Lay, his successor Jeffrey Skilling, Enron’s chief financial officer Andrew Fastow, and his assistant Michael Kopper.
These four Enron executives failed to meet important ethical and leadership challenges. The Enron Code of Ethics and its foundational values of respect, integrity, communication, and excellence obviously did little in helping to create an ethical work environment. These four led by intimidation and fear, promoting an unethical work environment.
The Enron leadership, especially Kenneth Lay and his successor Jeffrey Skilling, was known for removing of any employee from their current position when they took issue with or seem to be a threat to their power. This resignation and abuse of power ran throughout the company leadership. Enron board members also failed in their duty to provide proper oversight and to challenge poor management decisions. This was due to Kenneth Lay selecting many of the Enron board members. These board members were selected not based on their skills or leadership but because they did business with Enron or represented …show more content…

Take into consideration the auditors from Arthur Andersen. They did not take into consideration the greatest good for the greatest number of people. The auditors from Arthur Andersen took into consideration the consequences only for their own firm and their own well-being. Vinson & Elkins lawyers should not have destroyed evidence in order to protect their client Enron. Lawyers do take an oath to help protect and defend their client but they are not to help find ways for their client to violate the

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