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How can ethical issues of enron company be prevented

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HOW CAN ETHICAL ISSUES OF ENRON COMPANY BE PREVENTED
Written by: Alvo
An ethical problem arises when a particular policy, course of action, or judgment violates
the law of a society's moral standards. These conflicts can involve people as well as businesses.
Ethical dilemmas are pretty prominent in a free-market system. Capitalism encourages
creativity and hard effort by allowing companies to follow ethical standards. ethical issues
arise when doing the right thing and acting in a way that benefits the person or the business
most are incompatible. Many organizations suffer from different ethical issues, but the main
question is how can we prevent it from happening in our company?
1. Conflict of interest
The corporation could prevent the Vahalla Scandal from happening when Kenneth Lay
simply fired the traders rather than encouraging them by saying "keep making us millions"
when he found out that they had transferred money to their own bank accounts. Because he
condoned this kind of act when the traders were convicted for fraud, the reputation of the
company has been affected. On the other hand, LJM Investments will not be possible if Andy
Fastow cannot manipulate the media. He used this platform to attract different bankers to invest
in his company by reporting that Enron was profitable and hiding the fact that it was close to
being bankrupt.
Loyalty is a crucial quality that the organization looks for in its employees. It is critical for
employees to understand that they are working for the firm's purpose and not just for their own
sake or just to make money. The company can avoid having a conflict of interest by asking
employees to disclose if they have any at the time of employment and creating a policy that
discusses the expectations that you have for them and, in case of violation, the contract between
the two will be terminated or create a plan so that if these circumstances occur in the
organization, there will be an action plan so that it cannot affect the reputation and the operation
of the business.
2. Unethical accounting
The company can prevent unethical accounting practices by building a work environment
that knows the importance of a code of conduct. It is a policy that outlines the company's
values, norms, and the standards of morality and ethics that both workers and outside parties
must uphold when interacting with the business. This conduct emphasizes the importance of

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HOW CAN ETHICAL ISSUES OF ENRON COMPANY BE PREVENTED Written by: Alvo An ethical problem arises when a particular policy, course of action, or judgment violates the law of a society's moral standards. These conflicts can involve people as well as businesses. Ethical dilemmas are pretty prominent in a free-market system. Capitalism encourages creativity and hard effort by allowing companies to follow ethical standards. ethical issues arise when doing the right thing and acting in a way that benefits the person or the business most are incompatible. Many organizations suffer from different ethic ...
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