Ethics, Values and Corporate Governance -

Running head: ETHICS AND GOVERNANCE
Ethics and Governance
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ETHICS AND GOVERNANCE
Table of Contents
Introduction................................................................................................................................3
Part A.........................................................................................................................................3
Part B..........................................................................................................................................5
Part C..........................................................................................................................................8
Conclusion................................................................................................................................10
References................................................................................................................................11

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ETHICS AND GOVERNANCE
Executive summary
Ethics and governance are crucial components in the workplace operations. Ethical
code of conduct is implemented in terms of standardizing the organizational behaviour. This
code is considered to be an essential component of the corporate governance, which aims at
monitoring the behaviour of the staffs. The aim in this context is that of handling of the
situations. Enron is a reputed company dealing in natural gas and oil. However, the cases of
gambling, illegal trading degrade the workplace culture. Careless approach from the CEO
adds interrogative parameter to the organizational structure and the roles performed by the
personnel. Theoretical considerations of AAA model and Ferrell, Fraedrich, and Ferrell
model acts assistance for the readers to understand the mind-set towards ethical
considerations in the workplace.
Introduction
The topic is presented to discuss about the management of ethics and governance
considering the case study involving Enron, which was a major natural gas and oil trading
company in Wall Street. Due to unethical behaviours and illegal trading and gambling
activities, the company gained loss and finally led to being bankrupt. The report will present
an idea about how the theories of egoism and deontology can be related to the managerial
behaviours and approaches to keep the employees motivated in spite of their mistakes or
wrong doings (Craft, 2013). The topic will also illustrate about the application of AAA model
and Ferrell, Fraedrich, and Ferrell model that can influence the management of effective and
ethical decision making in business.
Part A
Based on the case study, as illustrate din the video section, it could be understood that
the vision and values of the company were demonstrated Enron was an energy based services

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ETHICS AND GOVERNANCE
company that used to focus on the management of energy based technologies and also the
company mission, vision and goals with the commitment towards environment and also
people, which made it successful. The company believed in honesty, integrity, diversity and
inclusion and also prioritised on the management of doing what has been told to people. The
business was doing right and the diversity management also helped in managing extensive
knowledge and excellence in ideas and opinions too (Nicolăescu, 2013). This benefited the
business to do things the right way and thus contributed to the people, community, operated
plans properly, dealt with the customers and protected the environment as well. The
company’s vision was to make the lives of people better and manage business in a good way
through innovation, creativity and extensive energy solutions and services, which also helped
in serving the people and also make employees realise their potential when they come to
work for the organisation. The company revolutionised the trading as well as the energy
market effectively and set standards as well, though the way of doing business was quite
complex and difficult to understand for many and this exposed the entire fact of Enron’s
operations as a major scandal, where fake promises were made, fraud activities were carried
out and also political manipulations were done too (Rath, Ischi & Perkins, 2014). There were
signs of corporate greed and this resulted in the company being bankrupt.
Based on the egoistic theory, it has been understood that extreme actions or reactions
were shown in reaction to the ethics of traditional rules and regulations, which represented
selfishness and it was clear from the case study involving Enron. While Enron was making
money, there were two workers who transferred money to fake accounts and even were found
to engage in gambling and illegal trade activities, which was not stopped, rather encouraged
by the manager and CEO (Eckhaus & Sheaffer, 2018). He stated about the need for making
more money rather than preventing such illegal activities, which showed clear egoism among
that individual. He acted on his own private maxim rather than thinking about what the