Ethics And Its Impact On Society Essay

1618 Words7 Pages
Ethics, broadly defined, is a set of values or principles established by society for its betterment. Many of these values and principles are incorporated into culture and law. Organizations today integrate ethics into the foundation of their businesses in order to augment the professional value and trustworthiness of their enterprise. Both public and private companies are expected to uphold certain ideals and internal controls for the benefit of their stakeholders. Operating with high virtues dictates an enterprise’s true value. Corporations like Enron, Volkswagen, and Mattel once ventures of firm principle and ethics created a rift in the business world. Consequently, these organizations and their lack of ethics facilitated the advancement of professional/legal business ethics in society; moreover, as a result of the ramifications, society benefitted from the previous failures in the long term.

Enron
Ethics play a huge part in how successful an organization may be. Today, we see many governing bodies and standards that contribute to the ethical decisions in a corporation 's daily operations. As a result of ethical failures, a crisis evolved sending many large corporations into bankruptcy; consequently, these failures erected the Sarbanes-Oxley Act along with the PCAOB and other oversight committees that would ruin the trust in big business and stakeholders for years.
Enron, most specifically, was an American energy, commodities, and services company that had a huge
Open Document