A Discussion On Ethics And Law

1635 Words Oct 13th, 2014 7 Pages
Enron, a Discussion on Ethics and Law
Leadership’s Role in Ethical Dilemma
As documented in a promotional video for Enron, Kenneth Lay states: “Enron is a company that deals with everyone with absolute integrity. We play by all the rules. . . We want people to leave a transaction with Enron thinking they have been dealt with in the highest possible way, as far as integrity and truthfulness and really doing our business right.” (Enron Vision and Values, 1998, 3:32) Whereas this message was intended to affirm corporate mindset, Lay’s business leadership and conflict resolution promoted the contrary. In 1985, Kenneth Lay founded Enron Corporation to satisfy his personal ambition and insight in the deregulation of energy markets. As many entrepreneurs do, Lay placed a focus on the success and future of his business on the financial performance and growth rate. Although short term success can be gained by focusing solely on the bottom line, long term success can only occur by first meeting the requirements of the law and maintaining integrity through ethical decision making. As you will see, Lay’s leadership focus on the priority of enhancing the bottom line actually trumped his ability to promote ethical and legal decision making for his organization. This conflict was the root of the problem that promoted individuals in the organization to make unethical and unlawful decisions on a business level as well as personal level.
Kenneth Lay’s Leadership Failure
The loss of…

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