Personal Ethical Framework

2603 words 11 pages
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
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As an example, Enron's CFO, Andy Fastow was able to get away with such destructive off-balance-sheet debt deals by playing deals with the bankers”. It is somewhat extortion in the banking world.
Watkins was hoping that a “crisis management team would be formed to address the issues… that could have resulted in coming up with the right plans, shoring up cash, and presenting a plan to Enron's creditors that might have prevented bankruptcy” (Nance & Koerwer, 2004). By not making reasonable efforts to prevent misdeeds and ignore ethical problems, Enron’s leadership casted the shadow of irresponsibility.
“The attitudes and motives behind the events and decisions causing eventual downfall seem simple enough: collective and individual greed created in the atmosphere of corporate arrogance” (Effects of Enron, 2005). Skilling changed the corporate culture of Enron to match the company's transformed image as a trading business. They hired the best and brightest traders and pampered them with "corporate perks, including concierge services and a company gym. Skilling rewarded production with merit-based bonuses that had no cap" (The Rise and Fall of Enron, n.d.).
In an interview by Nance & Koerwer (2004), Watkins stated Enron had a code of ethics that everyone had to sign, and it got updated nearly every year. It grew longer and longer with each revision, and at the end, it contained explicit rules against


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