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Mod 465

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Submitted By tcastleman41
Words 787
Pages 4
Week 1
Trevor Castleman
Bethel University

MOD450
Prof. Huss
1/22/15

Enron 1) It is in no way possible to reconcile Kenneth Lay’s statements in regards to Enron’s values and visions with the actual practices of Enron. Executive from the company used the company profits as personal funds. (p.11) It is impossible for Lay to truly believe that the company was in ethical operation as he was aware that Enron was using monumental amounts of credit to keep the company looking profitable.(P.11) Lay should have withheld legal operation and not allowed the company to be used as a person asset by corporate executives. 2) The way bonus’ are structured speak in great volume about a company when set up unethically. The way Enron’s bonus’ were structured so that employees were more concerned with the stock price than the state of the business. To the point that a dropping stock price was so unacceptable that employees were willing to lie, cheat, and steal to keep it on the rise. This meant defrauding investors and eventually collapsing a once profitable and respectable company. This system of a bonus is very corrupting. 3) Technical compliance with the law and ethical obligation are two completely different topics. When looking at the law it never seems to fail that there is some sort of loop hole. It is possible to completely comply with the law yet mislead and lose complete trust of stockholders due to failing to act ethically.(P.11-12) It is not only unacceptable but sometimes prosecutable by law to exploit gray areas of law for profit. At this level the main driver behind the decision making process should be to reconcile by any means possible. 4) In order to assure the business operated within the realm of obligated legalities as well as in compliance with the company’s ‘ethics and values’ there are numerous things that could have been done.

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