Enrons Collapse and Ethical Framework Essay Example | Topics and Well Written Essays - 2250 words

Enrons Collapse and Ethical Framework - Essay Example This essay discusses the collapse of Enron company, that presented the social scientists, media and business professionals with several other ethical issues that are prevailing in the business world. The collapse of Enron meant that many employees who were working really hard would also lose their job. The investors or the owners of the company were faced with the ethical dilemma of whether to hold on to the stock and lose their money or to support the company for the sake of hardworking employees who had nothing to do with these frauds. The increase in power of auditors was another source of concern. The Laws that were legislated in response to the corporate failure were a fair attempt to institutionalize the ethical behavior. The harsh laws were implemented for executives trying to mislead using wrong or far-fetched financial figures. It also increased the terms jail sentences for executives that were found to have been involved in any abuse of their power. Auditors can now blackma il the accountants or people working in finance and abuse their power. This will lead to further problem for the companies and create further ethical issues. Both of these issues are related to truthfulness. The employees who are being fair in their work are losing their job despite being truthful and that is something iron. Similarly, auditors require to be truthful the shareholder and the committee that oversees their work. If they are loyal to them then no ethical issues will occur from the increase in power of auditors.