Doing Business
Introduction
Twelve years ago, the notorious case of Enron attracted people’s attention on business ethic. Until now, some issues are still worth pondering. This essay is going to argue the issues that raised by the case in terms of managing and making decisions in business ethics, and the corporate citizen and its stakeholders.
Enron, the world’s largest energy trader, went bankrupt in a short period. It is not hard to discover when search further into the case that the collapse of the entity is inevitable. The company was in collusion with co-operative corporations lied about its profits and stands accused of a range of shady dealings, including concealing debts so they didn't show up in the company's accounts (BBC, 2012). During the process of operation, the management did not tell the truth to public though they knew it. Worse off, they deceived.
Ethical Dilemma
In the case, two core issues are attributed to the dilemma. The first one is business ethics management. “Business ethics management is the direct attempt to formally or informally manage ethical issues or problem through specific policies, practices, and programmes” (Crane & Matten, 2010). Jeffrey Skilling, the chief executive in the first half of 2001 who should be the first people knew the problems that exist in the company, but he said to public that the stock price would go up whilst he undersold his stocks. The point is he did not think there is anything wrong at the firm (BBC, 2012). Hence, he can be identified as egoism that stands at level of preconventional with instrumental purpose and exchange (Crane & Matten, 2010). On account of decision-making, personal values impact a lot. According to Schermerhorn (2008), he claims that person value which includes beliefs and attitudes contribute to determine one’s behaviour. Moreover, “Today’s senior people have a new accountability to the people they lead” (Gill, 2006). As to Skilling, he is the director of the company; employees may
Twelve years ago, the notorious case of Enron attracted people’s attention on business ethic. Until now, some issues are still worth pondering. This essay is going to argue the issues that raised by the case in terms of managing and making decisions in business ethics, and the corporate citizen and its stakeholders.
Enron, the world’s largest energy trader, went bankrupt in a short period. It is not hard to discover when search further into the case that the collapse of the entity is inevitable. The company was in collusion with co-operative corporations lied about its profits and stands accused of a range of shady dealings, including concealing debts so they didn't show up in the company's accounts (BBC, 2012). During the process of operation, the management did not tell the truth to public though they knew it. Worse off, they deceived.
Ethical Dilemma
In the case, two core issues are attributed to the dilemma. The first one is business ethics management. “Business ethics management is the direct attempt to formally or informally manage ethical issues or problem through specific policies, practices, and programmes” (Crane & Matten, 2010). Jeffrey Skilling, the chief executive in the first half of 2001 who should be the first people knew the problems that exist in the company, but he said to public that the stock price would go up whilst he undersold his stocks. The point is he did not think there is anything wrong at the firm (BBC, 2012). Hence, he can be identified as egoism that stands at level of preconventional with instrumental purpose and exchange (Crane & Matten, 2010). On account of decision-making, personal values impact a lot. According to Schermerhorn (2008), he claims that person value which includes beliefs and attitudes contribute to determine one’s behaviour. Moreover, “Today’s senior people have a new accountability to the people they lead” (Gill, 2006). As to Skilling, he is the director of the company; employees may