Business Research Ethics Essay

776 WordsSep 3, 20124 Pages
Business Research Ethics Over the years unethical business research has changed the way businesses are run. Scandals were happening way too often, so laws and regulations have made adjustments in effort to better prevent the unethical practices. The company, Enron, was a leading reason for some of the changes because it was one of the largest scandals and fastest collapse of an entire corporation. Most individuals that were involved in the fall of Enron have been tried and convicted for their unethical business research conduct. The article, “The Case Analysis of the Scandal of Enron” by Li Yuhao, describes the unethical behavior involved, the injured parties, the affect from the behavior, and how the unethical behavior could have been…show more content…
The organization, individuals, and society were affected because of the immoral resource behavior between Enron and Arthur Andersen. According to the article by Yuhao (2010), Arthur Andersen, as auditor but also as consultant to Enron, has to be responsible for both managers and shareholders since the provided accounting information has a direct influence on economic benefits of both parties. Clearly, the managers and Arthur Andersen chose betraying the shareholders to maximize their self interests (p. 39). By Enron adjusting and not disclosing full reports to the public and Arthur Andersen shredding reports was total betrayal and negativity affected everyone and anyone that had to do with Enron. Nobody came out as a winner at the end of this scandal. These unethical behaviors are outrageous but they easily could have been avoided. If Enron would have been more worried about their losses, rather than protecting their reputation, this entire situation would have been different. For board of directors in the company, if something seems too good to be true, then it probably is and need to be looked into further. If the executives, accounts, and auditing firm were more loyal to Enron and what the company stood for, rather than only thinking about themselves is another way the scandal could have been avoided.
Open Document