Topic > Organizational Ethics - 1378

Troubleshooting Organizational EthicsTroubleshooting Organizational EthicsAn organization without a true culture of ethical compliance can create integrity problems with stakeholders and customers. When a large corporation like Enron was structured, its approach to ethics on the surface seemed to oppose progressive innovation. Ethics policies and programs have been established to protect the company and its shareholders. According to author Berenbeim, the Enron company had a detailed code of ethics – it was not enough that the organization needed to embed ethics and integrity into the corporate culture. Enron had to focus on issues of business ethics raised by the conduct of the company's directors, officers, accountants and lawyers (Berenbeim, 2002).Clarification of the ProblemThe clarification of the general vision of the problem illustrates the evolution of innovations and frauds of Enron. Corporate records from the company's financial economists and accountants revealed a substantial amount of information and incentive problems. The issues complicate and potentially resolve the valuation issues assessed such as; earnings growth, stock splits, dividend changes, free cash flow limitations, share price-based compensation and hedging market risks. The Enron corporation contributed large sums of money to non-profit organizations in order to act on likely ethical issues before they became legal dilemmas. The company did not inform its consumers of the business decisions it made even though they knew the person on the other end of the deal had not. The Enron corporation filed a Chapter 11 claim to obtain bankruptcy protection. The uncertainty of the company's position has affected market confidence in... middle of paper... lawsuits with stakeholders and customers. When a large corporation like Enron was structured, its approach to ethics seemed to run counter to ongoing modernization. Ethics policies and programs have been established to protect the company and its shareholders. According to author Berenbeim, the Enron company had a detailed code of ethics – it was not enough that the organization needed to embed ethics and integrity into the corporate culture. Enron had to pay close attention to the issues of business ethics investigated by the conduct of Enron's directors, officers, lawyers and accountants (Berenbeim,2002). BibliographyBerenbeim, R. (2002). Executive action. Retrieved April 26, 2008 http://www.infoedge.com/samples/CB-EA15free.org Bodurtha, J. (2002) “Unfair Values” Retrieved April 26, 2008 http://bodurtha.georgetown.edu/enron/ bodurtha_enron_shell_game. org