Enron and Ethical Corporate Governance

INDIVIDUAL REPORTT

TABLE OF CONTENTS
INTRODUCTION ..........................................................................................................................1
MAIN BODY...................................................................................................................................1
CONCLUSIONS..............................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
Ethical corporate governance process means the policies and processes that company
have in place for dealing with the issues concerned with how it will be administered and will be
conducting day to day business. It is essential to consider that the companies primarily exist for
creating products or services for generating profits Intention of the company must be balanced
with effective controls which ensures that firm pursues profits without crossing the line into
realms of the unethical behaviour. There are various companies who have exploited the market
positions for inhibiting the competition or for threatening the local populations. The report will
discuss the case of Enron who reported the financial condition by the systematic, institutionalised
and planned accounting frauds, in relation to the ethical corporate governance. The report will
also discuss Sabane Oxley Act, 2002.
MAIN BODY
Balance in pursuing the market opportunities to maintain accountability & the ethical
integrity is strong challenge for the enterprises. Responsibility and accountability of the business
enterprise subject to questions. Manifest failures of the business ethics and corporate governance
in world financial crisis had increased the urgency for search of governance and ethical
frameworks for the business. Corporate governance practices are concerned with having balance
in social as well as economic goals and in between communal and the individual goals.
Governance frameworks are there for encouraging effective usage of the resources and requires
answerability for the stewardship of different resources (Dibra, 2016). Objective is of aligning
interest of the corporations, individuals and the society. Ethical frameworks for the business
provides stronger base for exercising ethical reasoning and moral values.
Ethical CG policies should cover the conduct of the senior management of entity such as
board of directors, chief executive officer and other higher officials that are seen as exempted
from the normal frameworks implemented in company. It is multi – faceted with different
complexity layers. Important part of the cCG is concerned with the fiduciary duty, accountability
and audit and control mechanism.
Case Study of Enron and ethical corporate governance
Fall of the Enron in 2000s had bankrupted NNYSE and brought down firm amongst Big
5 accounting firms. It also made high shift in values for corporate governance in USA
1