Wednesday, July 17, 2019
Analyzing Ethical Behavior Essay
In the pipeline of this report, it leave show the comparison of the honourable aspect of two well-know corporate giants, Enron and Bernie Madoff. The first subject Bernard Lawrence Bernie Madoff, Broker, Investment guru, Financier. formerly herald as a pecuniary king, he in his reign overnight turned white collar outlaw, which take to a quick and easy demise. Second, Enron Corporation, known for energy and commodities, operate, and well known for organism a major player in the electricity and natural gas, and communication, pulp and melodic theme order, crumbled to its knees into bankruptcy in the premature 2000s.The interrogative is, at the height of both these two companies, what went wrong. Where was the ethical breakdown? The who, what when and the why get out be the focus of this report. Bernie Madoff, former direct of NASDAQ, started his p atomic number 18nt company on wall Street Bernie L. Madoff Investment Securities LLC, 1960 it was as the apex of its game -bypassing firms who were specialist in the field of finance. Hijacked by Madoffs firm with their signature otcOver the Counter orders with brokers.The company busy family and close friends that comprised of his brother Peter, Managing Director, his niece (peters daughter) Shana Madoff, compliance officer and attorney, and his two sons Mark and Andrew. It was told by Madoffs sons that their catch made damaging statements, and confessed to them that the business was a lie, that it was a Ponzi end from the beginning, which led federal official agents to arrest Madoff, and all those involved. Madoff told authorities that the scheme began in 1990, simply according to the FBI, it was started early as the 1970s.It has been reported that Madoffs mental testing of deceit led his scheme to stack away as much as $65 meg, with a reported estimate waiver to investor of $18 billion. Reports of ethical violations by speed level managers continue to multiply contempt increasing attentio n being assumption to ethics by firms and business schools. oft of the analysis of these violations focus on both these managers lack of unconscious process principles or their leaveingness to abandon principles in the spirit of competitive pressures (Ludwig, 1993). Enron Corporation is the second in this detailed report of the fall of power.Traded on the NYSE ENE, and hindquartersd in Huston, Texas was an energy, commodities, and services company. For six consecutive years, Enron was named by spate Magazine as Americas Pi iodineering Business, with claimed r up to nowues of $101 billion in the year 2000. What do most companies base their ethics upon Enrons ordinance was one of Respect, Integrity, Communication and Excellence, described as treating others as they would be treated. Apparently they did not stay by that one in specific be pay back as we go through this report, it will soon show the where the breakdown began.Integrity, workings along with customers through honesty, Communication, obligated to link with one another, Excellence, Not accepting anything little than the best in all that we do. These are just a few statements from Enrons code of Ethics handbook. Given this code along with the assurance to professional ethics, it causes one to ponder these questions. How could a company dramatically collapse with reported revenues of $101 billion? With an increase the first, three quarters in 2001, falling into major bankruptcy in December of that same year.Could it be that the swear out to these questions is a failure of the top leadership, a corporate culture caused the demise in its ethical beliefs along with the complicity of investors and the financial institutions? Enrons corporate culture is described as having an appearance of arrogance that caused the public to effrontery that they could handle the risk without stumbling upon any jeopardy to the company and to investors. This type of thought would net one not to sleep at night , but the implicit message from Enron was obtain the numbers, if you are caught stealing or cheating, assume for another chance, you may get one.You chamberpot see that Enron did not do anything to force integrity nor respect it was undermined by the companys emphasis on reorganization, presentation, fastening and its considerations. To conclude, the answer as to why chief executive officers have bilked their companies and investors out of billions of dollars and brought a collapse of hundreds of corporate giants, it is because unethical and criminal behavior is the morals by which they do what they have done are doing, even as this report is being written.An pestilential could explode and if nothing is done nearly itthen the American system of highschool Finance and Big Business will crumble to a screeching Holt and continue this countrys economy. deity forbid. Destructive leaders can cause hardship not only to ready followers, but to the broader population. For example when a biggish company struggles financially, it is not only employees, but customers, suppliers, and shareholders that are negatively affected. The cognitive processes industrious by the leader play a large role in how he or she gathers information, interprets it, and makes decisions toward a course of activeness (L. Eubanks, 2010).
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