The analysis of the Enron’s scandal and the involvement of
employees in the scandal will be presented in this paper. It will also discuss how the Enron’s officers vote to put aside the key elements of the code ethics and the degree of conflict of interest that may be presented in the Enron Corp. The analysis will also emphasize on how corruption leads to different aspects.
Running and organizing a corporation requires lot of
sacrifices and perseverance. In order to achieve success, there are processes to be followed and functioned. But, leaders of a company shouldn’t take everything out of immorality. Morals must be represented in every function of the company, work must be done ethically and company must promote the rights of the workers.
Code of ethics is structural process that will involve
ethics and morals in every company’s functions. The missions and values of the organization must be integrated with ethics that will approach functional problems by creating ethical principles in the core values and standards of company’s organizational structure and function.
From the representation of the case, I think the employees
doesn’t have any knowledge about the vote that will put aside the key elements of Enron’s code of ethics, it’s because of the fact that no one reacted to the fraudulent acts of the executive officers, even though they might be afraid to tell the wrongdoings, there will be always one person that will leak all the fraudulent acts in a company. And if they knew it from the very start, they will be shocked and some of them may leave the company because they can’t work immorally. Some of them may also create a union that will protest about the vote to put aside key elements of the company’s code of ethics.
The employees of Enron Corporation didn’t plan to defraud
investors all along. Some of them might be encouraged to do it for money or with connection with Arthur Andersen but in some cases that if they are involved in the fraudulent acts of the executive officers, they must be working in fear of being put in jail or the pressure of losing everything if they have been caught in the process of fraud. The executive officers might manipulate the employees in order to work for their fraudulent acts. The employees are being caught off guard if the case involves them in the fraud situations.
The extreme conflict of interest that Arthur Andersen with
the Enron Corporation is represented in the case by Andersen providing consulting and auditing services for fees running into millions of dollars. Then some of the employees are also encouraged to cooperate with Andersen because they are blind to earn lots of dollars. The conflict of interest also strengthened when Enron hired Andersen employees to manage the affairs of the former colleagues. It means that the employees working for Andersen’s fraudulent acts entered many functions of the company, that’s why they Andersen can manipulate the profits of the company into putting it to his own pockets.
There are many cases that involves fraudulent acts in the
Philippines such as pyramiding and investing scam. But there is one case in the Philippines that is asymmetric with the Enron’s Corporation Scandal and it is the Priority Development Assistance Fund Scam of the PDAF Scam lead by a businesswoman named Janet Lim Napoles who just stole almost $197 million or Php10 billion.
The PDAF scam is a political scandal involving the alleged
misuse by several members if the Congress of the Philippines of their PDAF or pork barrel, a lump-sum discretionary fund granted to each member of Congress for spending on priority development projects of the Philippine government. In comparison with the Enron’s Scandal, the money received by the politicians appeared that they use it in for the respective projects and programs but in reality, it’s just a paper project or program that doesn’t appear at all. The misappropriation of assets and theft of assets is synonymous with the Enron Scandal that makes this one of the worst accounting scandal in the Philippines.
In conclusion, in order to build and implement code of
ethics, it will require a lot of work and process. The mission and values of the company must always integrate ethics in its different functions. Also, fraudulent acts may also hard to detect and some of them may hide it from the company in order to succeed, and the employees might not know that they are being involved all along. The employees of Enron might be afraid to leak the wrongdoings for their own safety and job security, but there will be some that will be encourage to do such acts for money. Furthermore, the acts of Arthur Andersen and his accomplice determine how conflict of interest or corruption may lead to such fraudulent processes and acts. Even though this happened and internal control might be strengthened, there will be some situations that may lead to fraudulent behavior, such as the PDAF scam in the Philippines that makes the politicians bag large amount of money for their own interest. That’s why Karl Krauss said that, “Corruption is worse than prostitution. The latter might endanger the morals of an individual, the former invariably endangers the morals of the entire country.
Analisis Pengaruh Stres Kerja Dan Organizational Citizenship Behavior Terhadap Kepuasan Kerja Dan Dampaknya Terhadap Retensi Karyawan Di Ford Jakarta Pusat