Essay on The Consequences of Bad Business Decisions

1304 Words 6 Pages
In today's world business is very competitive. To compete with other company's executives have turned to corrupt practices. Once respected businesses like Enron, WorldCom, and Arthur Anderson have been found deceiving there customers, stockholders, and employees. C.E.O.'s try to achieve the American dream and pursue capitalism to its fullest potential. In doing so, business leaders have lost their values and ethics, and make bad business decisions. The downfalls of a company are the consequence of C.E.O.'s bad decisions.

According to Marjaana Kopperi "business ethics, can simply be defined in terms of social and ecological responsibility of business. According to this definition, business ethics requires that business decisions
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According to David Ivanovich of the Houston chronicle, "The energy trading giant threw money at risky, often unrelated investments, an Indian power plant, a water company, a broadband communications operation, and in the process loaded itself up with $9 billion worth of debt." According to Kris Axtam the chief financial officer's protégé' Michael kopper admitted on trial that, "he had stolen about $16.5 million from the company since 1997, and helped Fastow - whom he called "brilliant" and "very greedy" - loot $45 million." Due to improper accounting, Enron was required to restate $586 million in money they were believed to have earned. Federal prosecutors, for concealing debts, charges the former chief executive Jeffrey Skilling and former chair Kenneth lay, with conspiracy and fraud. The company formed partnerships that allowed the company to falsely boost their revenue. Enron executives were then able to boost the worth of their stocks, while their business was failing. When the truth about this finally came out their stock value fell sharply. Due to Kenneth Lay and Jeffery Skilling irresponsibility, Enron began to self-destruct. Knowing that their company was failing, the greedy executives at Enron cash in on their stock. The employees, who are the true victims in this scandal, not only lost their jobs, and weren't allowed to dump their 401k while the stock plummeted, but lost their pension. The…