Enron, Ethics And Today's Corporate Values

A Research Paper on Enron, Ethics and Today's Corporate Values By Ken Silverstein Name Subject Professor 06 April 2018 Introduction Companies and corporations have been flourishing for the past years from technical to product centered enterprises with the sole purpose of manufacturing goods or in advertising their services. These companies have different strategies and methods of earning the trusts of the community, consumers, buyers and the society. Likewise, they have their methodologies for profit earning and stock sharing. This paper focuses on the company called Enron which was highly reputable for its success after being created in the year 1985. Enron was rebranded as a trader for energy and as a supplier of the same. Nevertheless, its growth even superseded huge companies and oil or gas companies in America (Sega T., 2018). In the year 1985, Enron joined a merger with the Houston Natural Gas Co. and Omaha InterNorth Inc. Enron was at such an advantageous position that it sky-rocketed high regarding its profits and earnings. More so, this was the era where oil was a huge necessity, and the regulatory environment gave Enron the opportunity to flourish. While, when the year 1990 arrived, the internet era was at such a boom, in a sense that almost everyone gets details or information through the web, allowing Enron to advertise its manufactured products and services which led more people to know more about the company. This move Enron had made is such a risk, to be honest, advertising your products, services or goods through the web that time is not sure. Well yes, the internet had its boom that time. However, not everyone, compared today has the appropriate and enough knowledge to do such internet things or internet actions (that is what I thought). In reality, during this specific era, almost 75 (%) per cent of the world’s population is not yet given the opportunity to have this modernized technological advancement. The central focus of this paper is to decipher and discuss the ethics and corporate values in the commercial and corporate world. Also, it will, and should be able to state some of the historical facts and primary reasons why Enron seemed to have his downfall. Moreover, the researcher will try to talk about the things that could have gone wrong. Furthermore, the very gist and lesson of these corporate facts should be summed up at the end of this research paper. Moreover, a literature review and a narration of supporting resources are included in the subsections of this paper to indicate the seriousness and importance of Enron's history and how it is interrelated with all of the competing companies in this very present time. One of the significant years where when Enron was the talk of the town and the company that seemed to have it all ended so suddenly. The reasons and explanations behind this fall should be able to be enumerated in the next paragraphs of this research paper. Supporting research materials and documents are in that way included in the body of this text to give a more understandable, comprehensible and coherent emphasis on how Ethics, Integrity and Principles in the world of business and commercial complexes play a huge role in the success of the business-minded or business-oriented individuals and tycoons. This paper serves as an accurate, concise and a factual guideline of how to handle business outlets in a safer, a more secure, and in a more fortunate means. The story of Enron serves as a stepping stone and historical fact that could be avoided by the present monopoly players in the world of money, or the world of commercialism. The black-collared workers might be able to be reminded that it is ideal and street-smart to have alternative or some other plans when it comes to handling and managing business enterprises. It is indeed a horrifying or some sort of scary task but could be easily accomplished if only people in the world of business and management know how to play the game right. Importance of the Research Having this research done, the researcher or the writer should be able to state and show what had happened to Enron as per the release made by Forbes. What had happened to Enron’s company way back then was indeed awful. A lot of challenges and problems arises. In actuality, these kinds of circumstances are still happening in the world of commercialism today. In fact, a lot of failures are widely happening. Simply because of an unexpected repetition of Enron’s mistake way back then. As the researcher, the major importance or the foremost significance of this research paper is to give some sort of awareness to those individuals who wanted to start a small-scale business. Simply, the researcher just wanted to give some basic instructions, and or directives. Purpose of the Research A certain research paper is not made for no sake, as the researcher the core purpose of this research is to give the readers some ideas of what Enron had face before, and how to avoid them in the future. Moreover, some thoughts, or several best practices would be included on this kind of research paper. These are some of the objectives used to serve as guides in finishing and fulfilling this research paper: 1 To be able to state the exact problem or the precise issue Enron have undergone. 2 To see the difference if Enron had done appropriate or suitable feasibility study or acceptable and related research studies before doing such steps or moves. 3 To be able to discuss in details what could have done better 4 To be able to give some sore or pieces of advice to future or to starting business entrepreneurs. Review of Related Literature Accordingly, in the year 1990's Enron was applauded for its expansions and huge projects and was even given the title as “America's Most Innovative Company” from the year 1996 to 2001 (Sega T., 2018).The Enron Online or also known as EOL was created to elaborate on online trade through the use of electronic websites that advertise on commodities. At first, it became such a immeasurable success enticing, encouraging and inspiring people to join either as the provider or the consumer. Enron was making waves in the online commercial buying and selling. Enron accumulated about an estimated total of 400 billion dollars of trade thus Enron additionally built a high-speed broadband telecom networks to explain on the buy and sell or trading business which it had recently started. With whatever reason this specific project has, millions of dollars were unexpectedly being spent by Enron and its administration only to find out later on that it did not sell as much as trading its oils and other products (Sega T., 2018).Thus, when American recession happened, Enron's investors and creditors were all at a losing end due to the unforeseen failure of the said project. The failure was really shocking to Enron and to his investors and creditors since what they know is that, using or taking advantage of the internet era is kind of helpful to them (which was not). Well, just a quick note, not all trending things or not all advancement always mean "success". In essence, the kind of technique that Enron had made were all for the education and are specifically intended for the future members or possible users. Thus, Grant T.C. declared that unethical behavior in the business environment could have such a colossal impact which might destroy or damage the enterprise and business conduits leading to its possible loss of power, prosperity, status or worst, lost of trust from all of stakeholders. The use of information technology could have either give positive or negative impact on the community, world of trades, world of commercialism, and the international business field. However, in the case of Enron, mismanagement of its company's projects have led it to fall and lose all its earnings. What could have been a successful idea became the very cause of its downfall. Hence, electronics or technology must not be used without sufficient research feasibility and studies to prevent misuse and misconstruction of plans, agenda, misuse of funds, and company savings. In additional points, the professional staff and administrator of Enron have failed to actually study and decipher the causes and effects of their plans and projects. Ineffective leadership and inability to foresee the future (in terms of the business deals and trading practices) could lead to the company's demise as what happened to Enron. Decisive actions are required to be taken. And, the need for a backup plan so that the enterprise will be deemed ready for whatever possible consequences as a result of the variety of projects performed for and in behalf of the company. It is never easy to build and create strategic developments without the risk of failing, this is a fact, and this is inevitable. Well, this could have been foreseen if only Enron had been vigilant and wise enough in all its internal and external business deals. Knowledge and skills are not enough to run the company, everything, as in, all moves that company should do needs to undergo a critical and careful researches and studies. There is a need for commitment, great responsibility towards the stakeholders, partners, and possible or future target market for the moral attitude that comes along the consistent performance at work or in the process of business improvements and workloads. It is undeniable that unethical practices always af...