Ethics is concerned with the kinds of values and morals an individual or a society finds desirable or appropriate ethical theory provides us with a system of rules or principles that guide us in making decisions about what is good or bad and right or wrong in a particular situation in essence. Enron's code of ethics (courtesy of thesmokingguncom) bush-lay correspondence (courtesy of thesmokingguncom) court tv conversation with robert h weiss, esq. Enron code of ethics the 64-page loose-leaf binder version given to human resources employees is dated july 2000 the 64-page loose-leaf binder version given to human resources employees is dated july 2000. The board of enron, understanding that fastow's involvement in these partnerships was a violation of its code of ethics, voted to suspend the code of ethics' application to fastow while these partnerships were active (berenheim, 2002. Enron's 64 page code of ethics was prefaced with a letter from founder kenneth lay in which he proclaimed the organization is responsible for conducting the business affairs of the company in accordance with all applicable laws and in a moral and honest manner (tsg, nd.
Enron's code of ethics: an analysis this paper will analyze enron's code of ethics and examine the sections on values and corporate responsibility the paper will use applicable theories and concepts and will detail ken lay's view of ethics and enron's corporate social performance. This writing will analyze enron's code of ethics and examine the sections on values and corporate responsibility, it will also use applicable theories and concepts and will detail ken lay's view of ethics and enron's corporate social performance, as well as reflect enron to be socially irresponsible to everyone with any type of financial investment [. Code of ethics a code of ethics represents a value statement of a company, its directors and its employees it is the expected behavior tone that needs to be practiced in the company it is considered to be a subsection of the ongoing mentoring program for ethical decision making. Attached is a 60+ page pdf from the smoking gun of enron's code of ethics, dated july, 2000 it starts with a foreword from the late kenneth lay, who was back to being ceo by then, which opens with this sentence.
The code of ethics as providing general guidelines to decisions about those actions a clearer understanding of the difference between the two would probably be to view the code of conduct as. January 30--with jury selection opening today in the criminal trial of former enron executives kenneth lay and jeffrey skilling, it seems appropriate to present excerpts from the in-house code of. On march 5, 2002, the markkula center for applied ethics convened a panel of four santa clara university business ethicists to discuss the enron scandal. A case in point is enron's corporate code of ethics issued in july 2000, about a year and a half before revelations emerged about the company's sale of assets to phony partnerships taken at face value, the enron code seems like a textbook model for right-minded companies to emulate. Enron's policy with respect to conflicts of interests, investments and outside business interests of employees the code of ethics contains commonsense rules of conduct with which the.
my code of ethics honesty, compassionate, loyalty, opinions on professional rights and responsibilities, confidentiality of patient and proprietary information, and i chose honesty as part of my code of ethics because it is very important to make sure that you instill trust and it's the right thing to do. In fact, enron, which was once a favorite to investors and an american energy company had filed the hugest corporate bankruptcy because of the major events that led to the eventual collapse of this corporation, the ways the top leadership at this company undermined the foundation values of its own code of ethics, and the unethical decisions and. Interest clause in the company's code of ethics that would have prevented the formation of the most troublesome special partnerships (cruver, 2002) employees were quick to follow the lead of top company officials. Enron shares peaked at $9075 in august 2000 (one month after code of ethics was published) shares dropped to $067 by january 2002 in november 2001, it was revealed that enron had overstated its earnings by several hundred million dollars.
The ethics code also offers enough principles of human rights to keep bono quiet for a week we believe in offering our employees fair compensation through wages and other benefits, the code. Corporate ethics: right makes might who worked for enron's government affairs department for six months, from february to july of last year enron had an ethics code but at enron. Enron code of ethics and its foundation of integrity did little to help nurture ethical environment at the company each division and business units were separate to others making controls difficult regarding operation and general management (sims & brinkmann, 2003. The 2001 enron scandal gave business ethics a new lease on life enron, an energy firm in texas, was considered an economic success story its stock had grown quickly, and the board of directors was satisfied with management.
Enron's code of ethics 64-page guide is exhibit 1 as trial gets underway 1 of 6 enron's code of ethics back to article. 29) asserts that enron's executives cast shadows in several ways, in terms of ethics those executives certainly exhibited an abuse of power, and the story of their abuse of ethics can be capsulated through the activities of jeffrey skilling (lay's replacement who didn't stay long. Lessons from the enron scandal on march 5, 2002, kirk hanson, executive director of the markkula center for applied ethics, was interviewed about enron by atsushi nakayama, a reporter for the japanese newspaper nikkei.