Essay on Enron and its Shortcomings - 1048 Words

Enron’s overall business practices are not ethical. One business practice of Enron that I think poses an ethical issue is their attitude towards its employees. They create a highly competitive and a result oriented business atmosphere. They used a system where they would rank employees every half a year and fire employees who ranked on the bottom 1/5 of the scores. This kind of attitude where only results matter and if you don’t produce anything good you will get fired will only hurt the company. This promotes unethical behavior and getting what needs to be done to get good results no matter what and if you do well you will receive big bonuses. This approach towards Enron’s employees did not have very good utilitarian reasoning. This†¦show more content†¦All the borrowing from the creditors just put Enron in more debt. The practice that Enron did violate the human right to be informed, is not just, and just didn’t have good utilitarian reasoning. They did not inform the shareholders, the employees, and the creditors about their practices or what the real picture was. The practices in accounting was not fair because they were not really working with money they actually had and kept doing business when other businesses in their position would, and should, re-evaluate how their business is run. The benefits and costs were not fairly distributed, this is because while most everyone that dealt with lost money in Enron when it collapsed the top management won out because they new what was going to happen so they sold massive amounts of shares of the company. Overall Enron didn’t solve any ethical dilemmas and they had unethical practices. Social responsibility means that a corporation should be accountable for any of its actions that people, their communities, and their environments. Enron fell victim to the iron law or responsibility because they were not socially responsible for their actions. In the long run Enron lost its power in the world from being one of the most powerful companies to a company that had shares worth less than one dollar and having their bonds turn into junk bonds. Enron was not able to forgo profits and take on losses so the social impact they had seriously hurt all otherShow MoreRelatedUniversity of Phoenix Organizational Culture1133 Words   |  5 Pagesis the case with the Enron Corporation, a once massive energy company that suffered arguably the most horrific financial collapse in American history. The Enron failure began with the development of a flawed corporate (organizational) culture, and was fulfilled by the constant reinforcement of that culture. From the top down, Enron s corpora te culture damned the company s successes and ensured it for eventual collapse. 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