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Leadership and Business Ethics Assignment

   

Added on  2021-06-18

17 Pages4756 Words25 Views
Running head: LEADERSHIPLeadership and Business EthicsName of the Student:Name of the University:Author’s Note:

2LEADERSHIPExecutive SummaryThis current report deals with the ethical issues in the context of Enron. This company providesoil pipeline and energy service in U.S. However, in 1990 this company has created a financialscandal, which led this organization to face bankruptcy. The managers and CEO had takenwrong decision failed to take ethical decision. This organization conducted their financialoperation in an unethical way. However, this organization wanted to improve their financialperformance but they had taken illegal approach to do this. Such financial scandal is occurreddue to inaccuracy in leadership and wrong decision-making process. Moreover, there was lack ofcultural diversity in the workplace and the organizational culture was not ethical. Hence, ethicalleadership could be helpful for this organization to avoid the legal issues.

3LEADERSHIPTable of ContentsIntroduction......................................................................................................................................4Discussion of the ethical leadership and CSR in the context of Enron...........................................4Evaluation of the organizational culture and influence of ethical leadership on this culture..........6Ethical decision-making tools for the leaders to deal with the moral dilemma...............................8Acceptance of diversity.................................................................................................................10The impact of corporate policy and culture on stakeholders and the environment.......................12Conclusion.....................................................................................................................................14References......................................................................................................................................15

4LEADERSHIPIntroductionCorporate social responsibility or CSR is an internal organizational policy of anorganization. However, the CSR should be integrated into the business model to improve theperformance of an organization. CSR goes beyond compliance with the legal requirements of anorganization (Schwartz, 2017). A business includes CSR for ethical and strategic purpose. Thestrategic purpose of the CSR is to enhance the long-term profit in the business on the other hand,from the ethical perspective a business needs to adopt CSR to reduce the legal risk. This currentstudy deals with the Enron scandal that leads this organization to face bankruptcy. Enron case isthe largest report of bankruptcy in U.S. However, Enron is accused for the financial scandal inU.S. The CSR activities are not maintained in this organization properly, which leads them toface legal obstacle in their business. Discussion of the ethical leadership and CSR in the context of EnronEnron is a U.S based organization. This organization has started their business as aregional natural gas pipeline company in 1985. However, this organization is blamed for thefinancial scandal and faced bankruptcy. Deregulation of the energy market allows thisorganization to make bets on the future price. Enron has taken advantages of this situation. Enronhas created a financial website EOL for their electronic trading. In this business they investedmore and finally faced huge loss without any significant return. Jeffrey Skilling the CEO ofEnron tried to hide their finical loss and expressed their organization as a profitable organization.As a result, after the audit Enron has found as the biggest audit failure in U.S (Consultancy.uk,2018). It can be said that the leadership style and activity in this organization was not good,which hampered the reputation of this organization.

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