Business Ethics
The current article on ethics is ‘Enron, Ethics and Today's Corporate Values’ which is available on the Forbes website. The main points of the article are the segregation of duties, implementation of ethical rules in detail, balance between the desires of stakeholders and the ethical demands and the importance of ethical practice to enhance the strength of the business. (Silverstein, 2013)
The current article is very important for the understanding of the ethics because it is about the Enron’s ethical issues, which is the most important case study relevant to the ethical issues. In the bankruptcy of the Enron, the main reason was to not follow the ethical rules and the corporate governance standards. Therefore, the current article can increase the understanding of the ethics. (Silverstein, 2013)
The first ethical issue discussed is that in the Enron, the number of employees in the key positions was performing more than one duty which increases the chances of frauds. The system of authorization was weak and due to no segregation of duties, the executive directors committed fraud. Therefore, it is recommended in the article that the companies must hire different individuals for different duties to insure the authorizations. (Silverstein, 2013)
The second ethical issue is that the businesses focus on the performance of the business to increase the shareholder’s wealth instead of implementing and spending funds on the ethical issues related to the business. The article recommends that the directors of the business must maintain a proper balance between the ethical needs and the financial targets of the business to reduce the chances of unethical behavior and frauds. Moreover, the management of the business can enhance the strength of the business by implementing the ethical regulations according to the applicable code of ethics. (Silverstein, 2013)
Work Cited
Silverstein, Ken. "Enron, Ethics And Today's Corporate Values." Forbes. Forbes Magazine, 14
