Personal Ethical Framework
According to Johnson (2012) leaders are powerful role models, and policies will have a little effect if leaders do not follow the rules they set. In Enron case, corruption and ethical misconduct were deeply embedded in their business culture where profitability was more important than ethics. In this paper, I will address the factors that had led to the development of the culture of profit before principle at Enron. Also, I will create my personal code of ethics that will guide me in my professional and personal decision making and doing the right thing when faced with ethical challenges.
“Enron: The Smartest Guys in the Room” shows us how basic human nature does not change, whether it is firing as a means to resolve disputes, or in the ceaseless obsession to gain for profitability sake. This all makes for terrible human actions. According to Bethany McLean, the collapse of Enron is a story of “human failure” that created a culture where profitability is the priority. According to Boatright (2003) the major factor in Enron scandal is an increased focused on share price; second important factor is the deregulation that occurred in the past two decades and the legal liability of accounting firms and investment banks was reduced, and third factor and most significant are simultaneous changes in the compensation structures for executives, accountants, and investment bankers. However, these factors, I believe were brought by the culture that leaders had cultivated and were influenced by the shadows they have casted as what the bible says "a man reaps what he sow” (Galatians 6:7, NIV). Every person’s behaviors and actions will have consequences and the effects are not necessarily obvious, such as when Enron executive’s slowly casted shadows of power, privilege, mismanaged information, inconsistency, misplaced and broken loyalties, and irresponsibility. In Enron, these were demonstrated by human failures of greed and corruption, dishonesty and intolerance, and pride
“Enron: The Smartest Guys in the Room” shows us how basic human nature does not change, whether it is firing as a means to resolve disputes, or in the ceaseless obsession to gain for profitability sake. This all makes for terrible human actions. According to Bethany McLean, the collapse of Enron is a story of “human failure” that created a culture where profitability is the priority. According to Boatright (2003) the major factor in Enron scandal is an increased focused on share price; second important factor is the deregulation that occurred in the past two decades and the legal liability of accounting firms and investment banks was reduced, and third factor and most significant are simultaneous changes in the compensation structures for executives, accountants, and investment bankers. However, these factors, I believe were brought by the culture that leaders had cultivated and were influenced by the shadows they have casted as what the bible says "a man reaps what he sow” (Galatians 6:7, NIV). Every person’s behaviors and actions will have consequences and the effects are not necessarily obvious, such as when Enron executive’s slowly casted shadows of power, privilege, mismanaged information, inconsistency, misplaced and broken loyalties, and irresponsibility. In Enron, these were demonstrated by human failures of greed and corruption, dishonesty and intolerance, and pride