Ethics And The Corporate World

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If there’s anything that we could learn from the recent events in the corporate world is that ethics has been undervalued. Many organizations have been destroyed or heavily damaged financially and took a hit in terms of reputation, for example, Enron. The word Ethics is derived from a Greek word called Ethos, meaning “The character or values particular to a specific person, people, culture or movement” (The American Heritage Dictionary, 2007, p. 295). Ethics has always played and will continue play a huge role within the corporate world. Ethics is one of the important topics that are debated at lengths without reaching a conclusion, since there isn’t a right or wrong answer. Its basically depends on how each individual perceives a…show more content…
Values, Ethics and Business Responsibilities There is no doubt about it: in conducting business, Enron’s management acted solely without any kind of ethics, accountability or responsibility, holding financials off the balance sheet by burying them in various partnerships on one hand, and by inflating the value of the company by reassuring investors that the company was in fine financial shape on the other. Very simply, when it was learned that revenues were not just millions, but billions of dollars below expectations, the bottom fell out. The stock was dumped, and it lost value. The stock has lost 99 percent of its value and, in its wake, 20,000 Enron employees who had stocks in their 401(k)s lost their retirement savings (Sloan 18). But on the other side of the coin, Enron chairman Kenneth Lay made $205 million in stock-option profits, and other executives, who sold out before the bottom fell out, made out well, too (Sloan 18). Where is the justice in this? The other questions here are, who was responsible for the fallout? Who can one point a finger at for restitution? The answer: not any one thing or person. The blame spreads over a variety of people and parties (Sloan 18). According to writer Allan Sloan of Newsweek, Enron’s failure was a systematic failure of the checks and balances that are supposed to, as he writes, “keep a company from running amok . . .” (Sloan 18). In short, company executives have a moral
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