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A review of the enron code of values

Code of Ethics



The Enron code of ethics was well detailed, and the provisions of the code of integrity were in line with the plans of the organization. According to Sims and Brinkmann (2003), Enron procedures together with the code of values fostered the company reputation of being fair and honest. The organization tried to protect the passions of its customers making sure the project that it provides the best more than their opponents. The code of integrity specified that most the company employees should not conduct themselves in any manner that will jeopardize the best interest with the company. In addition, the employees weren’t supposed to take part in any business that would advise competition with the Enron. Throughout the above procedures, the company gave room to get failure instead of bringing in a perceived accomplishment. The guidelines indirectly forced the top executives as well as the junior employees to engage in unethical behaviors that later made the company failed ethically and subsequently monetarily.

Enron can be Synonymous with Ethical Failing

Considering the fact that Enron’s code of values was inclined towards the very good ethical execute of all the cooperate employees, it failed and was declared insolvent in 2001 (Fusaro and Miller, 2002). The failing of the Enron can be related to the failure of the business and the underhanded behavior within the company. The significant conditions were and condescension where competition and economical goals were over highlighted. The profit alignment of Enron compelled that to often emphasize on policies that would see the era of the benefits by all means. The employees were afflicted by a ranking system where 20 percent of the employees were supposed to be rated below the bare minimum requirements and fired (Marianne, 2009). Enron applied the rating program with a wish of encouraging the employees to work extra harder and prevent low rankings, but the system harmed Enron contrary to the targets of the supervision.

The continuous analysis of the staff for functionality together with the lifestyle of competition lead to lies. The strict evaluation process compelled the employees to engage in cheating on the work. These people were always stressed and feared to lose their very own jobs due to underperformance. Hence, they resorted to underhanded means of enduring for a much longer period in the company, as an example, they ripped off about their progress even if they knew that things weren’t all that very good. non-e in the employees sensed the disgrace of cheating since it was becoming a lifestyle. Those who stood by what was right was regarded unusual by the cheating employees.

Besides cheating, the employees protected errors and can not survey errors of their colleges seeing that each of them was entangled in his or her line of obligation and concentrated only their particular achievements in the places of work. According to Katzenbach (2015), workers in a organization help the other person by asking and addressing questions. Nevertheless , the competitive environment in the Enron compelled the employees to avoid asking inquiries since they considered it humiliating. Moreover, they were doing not like assisting each to prevent competition and avoided mentioning their concerns and looking for clarifications.

Moreover, Enron ensured that every its staff did not build relationships outside get-togethers that could out-compete Enron available in the market. Thus, the employees were not allowed to express any doubts about the economic status and the plans from the company. Olson, a company expert, lost his job mainly because Olson advised his customer not to get the company due to the unpredictable status of the organization (Marianne, 2009).


Conclusively, the evil tradition in the Enron company that was created simply by selfish business executives led to the fall of Enron. Both the representatives and the staff engaged in unethical practices plus they ended up adding to the demise of the Business.

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Category: Business,

Topic: Code Values,

Words: 652

Published: 12.12.19

Views: 161