2 examples importance of business and professional ethics

Business & Finance
Tutor: None Selected Time limit: 1 Day

2 examples of how business and professional ethics are important in a paragraph of minimum 8 sentences.

Sep 15th, 2015

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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 lessons yet.


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Sep 15th, 2015

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