The managers are expected maximize the returns while comparing with the other standards. In America the mangers was recently arrested through this we can understood that the increasing level of manager negligence. The America stock market has added to the political fields to reform the style of business (Bratton, n.d.). The corporate irresponsibility in the ENRON scandal for instance multiple lawsuits from a range of stakeholders with demand for the demo crazing structure for the corporate power (‘Learning from the mistakes of Enron’, 2003). Thus the scandal involve illegal activity and the court of law will determine the extent of the civil and the criminal liability. Then to control the fraud more effective department punishment should be given by the officials.
In the modern business the Enron scandal make a shame to the modern business. And within the end of the scandal some of the people lost their entire pension and also the main people did not get their salary. And the CEO was in a typical condition to face the consequences. There are many causes of Enron collapse (Bratton, n.d.). Among them, there has been a conflict arise of the cases the culture of the Enron was the major cause for the collapse. Then when some of their business and trading ventures began to perform poorly, they tried to cover up their failures.
Professional Dilemmas and the Failure of the market
There is nothing wrong with the market filing to fulfill their task of leveling the playing field between the buyer and the seller. There are also certain types of market with failures. The most common form of the market failures are the asymmetries and it’s a thread to the raise of others attitude. Insider trading is one of the indefensible exploitation of information asymmetric (Bratton, n.d.).
Ethical literacy is all about recognizing. The issues before they become legal problems. The neglect of managerial integrity capacity is at the moral root of Enron legal and financial problems. The spectacle of top Enron executives pleading the fifth in congressional hearings about managerial immoral and illegal conduct is a vivid examples of the consequences (‘Learning from the mistakes of Enron’, 2003).
The government was also harmed because American political tradition of chartering only the cooperative which serve the good was incur pirated by the public (‘Learning from the mistakes of Enron’, 2003). The scandal also affect the secondary and the tertiary stake holders. Then a parallel process ordered in the legal profession. The industry reputation furthermore, was tarnished by the aggressive marketing leader ship practices, the taxpaying public general all included in the additional fill risk form.
These multiple stake holder damages can be viewed as the result of serious lapses in the four dimension of management integrity capacity process, judgement, development, and system. While unlikely that Enron executives failed to perceive the relevant moral issues, it is clear that they were not sensitive to them (‘Learning from the mistakes of Enron’, 2003). Moral deliberation then second component of process integrity is the capacity to engage critical and the comprehensive appraisal.
The moral character the third component of process integrity is the individual and collective capacity to be ready to act ethically. The motives and the corrupting workplace couture they created (‘Learning from the mistakes of Enron’, 2003). The lack of potential virtue of citizenship is particularly damaging to internal and external character cultivation. The moral conduct, component process integrity, is the individual and collective carrying out of justifying actions on a sustained basis.
Tenor scandal adverse moral input on the primary stakeholders is evident, top managers chose the stake holder deception and short term financial gains for them financial gain for themselves which destroyed their personal and business reputation that means rotation. They all risk criminal and civil prosecution that could lead to improve bankruptcy (Bratton, n.d.).
Employees were deceived about the firm actual financial condition a and descried of the freedom to diversify their retirement portfolio they had to stand by helplessly while their detriment savings evaporated at the time of the top manager cashed in on their business (Bratton, n.d.). The government was also turned into harmful because America political tradition of chartering only corporations that serve the public good was violated by an utter lack of economic abuse of power that benefited select elite.
Develop a reputation for dependability and alignment of moral reality but the duplication exploitation of employee detriment savings exposed the cruel behavioral hypocrisy of top ten executives that means that giving of top ten executives (Bratton, n.d.).
The manager can attempt to evenfall moral accountability by fragmenting their handling of management and the ethics issues. The way to address this evaluation is to enhance the capacity. For the business leaders and their firms exhibiting judgment integrity means being held accountable for achieving good outcomes.
Bratton, W. Enron and the Dark Side of Shareholder Value. SSRN Journal. doi:10.2139/ssrn.301475
Learning from the mistakes of Enron. (2003). Strategic Direction, 19(3), 23-25. doi:10.1108/02580540310794417