BUSINESS ETHICS TO STAKEHOLDERS IN THE ENRON CASE

BUSINESS ETHICS TO STAKEHOLDERS IN THE ENRON CASE

According to Bryman and Bell (2015, Pg. 102), business ethics reflects the business philosophy of which on the objective is to find out the fundamental purposes of the organization. If the purposes of the organization are to increase or maximize the returns to the shareholders, then sacrificing profits to some other concerns amounts to fiduciary responsibility violation. This is supported by Ireland, (2010, Pg. 844-845) who argue that corporate entities around the world are considered as separate persons, where the corporate persons are entitled legally to the liabilities and rights to the citizens as the persons. Failure by these corporate persons to meet their obligations to the citizens is deemed to have acted in an immoral way. Colley (2007, Pg, 71) noted that in as much as the organization is legally obliged to fulfill their obligations to all the stakeholders including the general public the management of this organization has a higher duty of ensuring that they have executed their legal duty in a morally sound way and do all they can to avoid insider trading practices. In the case of Enron, the top management of the Enron Company had at best the ‘amoral’ attitude toward observance of business ethics and while they tried to observe the spirit of the law they knowingly embarked on immoral routes to enrich themselves at the expense of the shareholders, company and the community. For example, Kenneth Lay the CEO, chairman and the founder of Enron lacked integrity and was dishonest. He committed many unethical practices as a CEO………………….

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