Taking a Look at the Enron Scandal

545 Words Feb 22nd, 2018 2 Pages
They are the unwritten laws or rules well-defined by human nature; ethics is something people encounter as a child learning the difference between right and wrong. “Just how character matters in people, it matters in organization.” Justin Schultz, a cooperate Psychologist in Denver. For most organizations, values statements are simply rhetoric that sits on a fancy plaque on the wall. The real values are seen in the halls, not on the walls. What happens when an unethical behavior is committed? What happens when it is committed by a large cooperation, large enough to hurt the economy? Most people may claim they have integrity but when asked the definition they have their own meaning to the word, what has found that the internal definition each person has is unique.
Financial reporting is the latest area hit with the ethical bug. On November 8, 2001, people were shocked when one of the hottest companies of the booming nineties, Enron, pulled out a huge scam which affected the thousands of people. Enron scandal tells a story of greed, over confidence and self-delusion. The business failed but the management cheated and kicked the problems down the road. They inflated its income figures by $586 million over a four-year period. Less than a month later, Enron filed for bankruptcy.
Enron had started as a gas pipeline company, it soon expanded into the world’s largest and dominant corporation…

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