Business Ethics - The Enron Scandal universal ethics point of view- Case Study

headache concern Ethics - The Enron Scandal universal ethics point of view- - Case Study ExampleThe accounting juke that would eventually come to be known as the Enron scandal was a creative, institutional, and systematic plan (Malcolm, 2008). Parties that took smash in concealing Enrons real financial condition were well known to the company. In this respect, the mastery to address the underlying situation becomes an institutional process. To start with, the companys corporate governance had failed. or else of hiding this failure, stakeholders could have been consulted on ways to foster and enhance corporate governance. By virtue of business organisation operations, shareholders and all other stakeholders for that matter deserved to know the actual direction that the company was taking.Board effectiveness, qualification, integrity, responsibility, and accountability were highly questionable. These aspects only came to light at a time when it was impossible to salvage the comp any. Given that business operations are profit-driven and that profits can undoubtedly attract unethical practices, there was need to ex-serviceman and audit board operations from time to time. In so doing, the underlying issues were set to be place before it was too late. The situation can, therefore, be addressed by taking measures to ensure that the company does non run independent of shareholders and other interested stakeholders.Conflicting interests were highly evident in the Enron case. Arthur Andersen played deuce roles in Enron that of an auditor and that of a consultant (Malcolm, 2008). The direct implication is that one role relatively jeopardized the other, disposed that the same party undertook both roles. This situation stands to be addressed by ensuring that the two roles are handled by two independent parties. Ultimately, the management is to blame. This is because it downplayed the underlying risks of having an auditing firm that still offered consultation servi ces to the same company. financial entities that maintained an off-book relationship