Business Ethics : Enron Scandal

1951 Words May 14th, 2015 8 Pages
Business ethics have been the central concern of all corporations in operating business. Enron scandal was the highlighted case representing the dramatic violation of business ethics with the involvement of misusing power to conduct unethical missteps to gain self-interest, resulting in a collapse of the whole organization. This report is aimed at assessing Enron case to provide better understanding of its rise and fall through the background of the company’s formation and bankruptcy as well as applying few of ethical approaches to seek some possible alternative outcomes such as utilitarian, expectation and choice.
II. Body
a. Background:
Enron was found in 1985 as the result of between Houston Natural Gas and Inter North Pipeline Company, which operated in constructing facilities and distributing energy within America and worldwide (Sloan et al, 2002). In 1990, Enron received the huge benefit from Bush government deregulation through lobbying, even though the unpredicted price fluctuation got massive complaints from local governments and energy producers (Gerth and Oppel, 2001). Jeffrey Skilling was recruited as a consultant to help Enron to enter into other fields- broadband service and commodity trading future contracts. A decade later, online trading commodity and future contracts, which allowed all market participants to engage in global exchange transactions from their own computers, was introduced and that launch brought Enron Online to the largest site in trading…

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