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Enron Scandal
How would you evaluate the causes of the Enron scandal in ethical terms based on your readings to-date?
Much has been said about the Enron scandal and opinions continue to vary as to the reasons which generated the disaster. In terms of ethical misconduct, I find the following reasons to be of most importance:
Lies and greed: In their immense desire to maintain their company on the Wall Street's highest quotations, Enron officials lied and deceived their employees, their business partners, their customers and the general public. I believe these lies to have been based on both greed as well as a naive optimism that things would turn around in a favourable way and the company would recover without anybody ever finding out what had went on behind the curtains. However, when this did not happen, Enron executives continued with the lies and showed lack of responsibility in ruining thousands of lives.
Strategic partnerships: However strategic partnerships are appreciated in the business world due to their numerous benefits, they must comply with the rules of morality. Enron's partnerships were based on lies and were aimed to generate and cover even more lies. Take for instance their financing of political campaigns, which offered them access to political laws and regulations, made in their favour. However sponsorships of political parties are legal, the results Enron retrieved were immoral. Another dubious partnership was that with audit and accounting firm Arthur Andersen. The partnership was unethical but possible due to the lack of specific judiciary regulations and it was marked by numerous conflicts of interest.
Altering company records: Once an investigation was commenced, Enron and Andersen executives ordered the destruction of relevant and incriminating company records. This made investigators' work even more difficult and was aimed to conceal the truth form the public. These facts were proven by Enron employees and their low morality is undisputed.
Bibliography
2002, What Really Went Wrong With Enron? A Culture of Evil?, Santa Clara University, Markkula Centre for Applied Ethics, http://www.scu.edu/ethics/publications/ethicalperspectives/enronpanel.html, last accessed on January 4, 2008
2002, Lessons from the Enron Scandal, Santa Clara University, Markkula Centre for Applied Ethics, http://www.scu.edu/ethics/publications/ethicalperspectives/enronlessons.html, last accessed on January 4, 2008
Enron 101, MSNBC, http://msnbc.com/modules/enron/,last accessed on January 4, 2008
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