Business ethics, it its broadest sense, is a “consensus of what constitutes right or wrong behavior in the world of business and application of moral principles to situations that arise in a business setting.” (Cross & Miller, 2012, p. G-4). Corporations by their very nature have a direct responsibility to shareholders who are collectively the owners of the corporation. Although shareholders have the ability to direct corporate policy through participation in shareholder meetings and putting shareholder proposals to vote, commonly reffered to as corporate governance, few shareholders have a direct view of every day workings inside a large company like Enron. Responsibility lies with the board of directors and their executives to exercise duty of care, duty of loyalty and disclose and conflicts of interest which may arise (Cross ...
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...est illustrated with an old Chinese saying; Give a man a fish and you feed him for a day. Teach a man to fish and you feed him for a lifetime.
Cross, F. B., & Miller, R. L. (2012). The legal environment of business: Text and cases (8th ed.). Mason, OH: Cengage.
Elliot, D. J., & Bailey, M. N. (2009). Telling the narrative of the financial crisis: Not just a housing bubble. Retrieved from http://www.brookings.edu/~/media/research/files /papers/2009/11/23%20narrative%20elliott%20baily/1123_narrative_elliott_baily.pdf
Hart, O. (2009). Regulation and sarbanes-oxley. Jpurnal of Accounting Research, 47(2), 437-445. doi:10.1111/j.1475-679X.2009.00329.x
Wallison, P. J. (2011). Three narratives about the financial crisis. CATO Journal, 31(3), 535-549. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&db=aph&AN= 67075495&site=ehost-live
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