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The example of Enron shows us how
destructive the lack of business and professional ethics could be. Before its
collapse, Enron was the world’s biggest energy company. The so-called Enron
scandal was an example of a systematic and institution-wide accounting fraud. It
was difficult for securities investigators to comprehend why members of Enron
top management, those who claimed of no knowledge and involvement in the fraud,
couldn’t have known of it. The creative accounting practices was so widespread,
it pervaded all businesses of Enron.
A more recent example of the
devastation resulting from the lack of ethics is Bernie Madoff’s $65 billion
investment fraud. Though the Madoff saga ended better than Enron (Enron’s top
executive hardly did any time in jail or paid reparations to the thousands of
Enron employees and retirees, and investors the billions of dollars they lost),
the actual losses to investors were still huge at about $18 billion. Moreover,
the Enron scandal resulted to stricter securities laws, rules and regulations.
In spite of the financial and
economic, and human losses of the scandals perpetuated due to the lack of
ethics in business and the profession, it seems that we haven’t learned our
Please let me know if you need any clarification. I'm always happy to answer your questions.
Sep 15th, 2015
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