BUSINESS ETHICS AND GOVERNANCE

Introduction

Business and marketing are the two most booming words. The business’s success is always determined by its way of managing things today business is dependent on three principles which are social, economic, and ethical balance. If a business is running, then it’s a must for the business platform to follow these three rules. These three rules help in changing the outlook of the whole business and if there is one who does not take care of these three principles then de might have to face high defame, inflammation, and problems (Bass and Milosevic, 2018). In this context, there’s an acknowledgment of how the energy-trading business has to face bankruptcy and downfall just by not following the 3 Principles.

The Problem of Induction

Fundamental principles and ethical issues raised in the case

The terms ethical and fundamental are the two most important principles that define the outlook and growth of the company Ethical means to contribute to the company and economy in a free and fair manner but today business policies always go against the policies that the government and due to this there is much business who are facing the downstage problem. The same in this case of the energy trading business. There are many fundamental principles and ethical issues raised in the case

An event that led in the USA and also, it’s a famous event that shows how the company is bankrupt and facing the downstairs problem just because of the ethical and fundamental issues raised. Enron was embroiled in an ethical accounting crisis in 2001 after employing “mark-to-market” accounting to inflate earnings and misusing special-purpose organizations (corporatefinanceinstitute.com, 2022). The reason why ethical issues are important is because of the way of professionalism today. More than 80% of countries are adopting the method of ethics because they have fared off being downstage. This case highlights the impact of transparency on the business and company it is for every business individual to hold a fair and free manner for transparent and for the company’s growth due to the unfair policies of the scandal issue there are many more problems which Enron have to face such as Eron executive have to go to jail and there is an illegal action on his company to. To begin with, “current laws and SEC regulations permit firms such as Arthur Andersen to give consulting services to a company and then produce an audited report on the financial results of those consulting operations” (corporatefinanceinstitute.com, 2022). The fundamental issue raised by the case is that there are no such actions and such big companies hold their rules and executives on their own.

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Identify the relevant stakeholders

There are two types of stakeholders and those are primary stakeholders and secondary stakeholders in the scandal case the executive managers, the employees, and the stockholders (Benson, 2020). However, ethical business and accounting fraud is found to be perfect in this case because this case is all about the misleading and afraid case so the relevant stakeholders are engaged in the activities of fraud. Other than that, many more people are the belly when stakeholders of this case such as the persons who have taken the stacks and the investment of the company can be either industry or relevant company (Markham, 2022). There are primary and secondary stakeholders. The primary stakeholders are individuals who have joined the organization and whose assets are critical to its sustainability. Representatives, clients, and investors are among them, as are the administrations and networks that provide critical infrastructure.

These include the media, trade associations, and small-scale meetings. However, the unacceptable practice of both stakeholders is proven to be accounting ethical. An organization that is running on a global scale must have its vision and values but in the scandal Enron case, The vision and mission other than values are missing (Papangkorn et al. 2021). To address a problem, businesses must be able to work with a variety of stakeholders. Organizations must assess their commitment to stakeholders and social responsibility in the fourth step. Enron’s business culture and social responsibility commitment are highlighted the most in this case as CSR is defined as the category low. The four ethics are economic, legal, ethical, and philanthropic also found to be missing in this case as the company has not contributed any of the legal prospects or ethical prospects and is not economic also (Rashid, 2020).

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Propose appropriate resolutions for treating the issues of the case

Under the act of the justice and fraud system, there are many appropriate resolutions for treating the issue of the case since in the scandal case there is a clear point that how the company uses the ethical issues in violence and misses leading the economy. Even the stakeholders of the company have also compensated for many of the advantages of the fraud. Policy Development in the Department The Section is responsible for implementing enforcement activities and providing advice to the Department’s leadership on issues such as legislation, crime prevention, and public education (time.com, 2022). The action implements and executes the whole point to consider how much the fraud is and how long it continues. After observing every point the fraud action will be taken upon such a scandalous company of scandal. As a fine, the company must pay the fine fixed by the law, and also to break the ethnic rules many Enron executives have been sent to jail (time.com, 2022).

History

Standards and/or codes that apply to the case

Well, the 5 codes of ethics are Integrity, Objectivity, Professional Competence, Confidentiality, and Professional behavior. These 5 words are very important in journalising the way that the company behaves and in a scandal case we can easily journalise the lack of these 5 points and codes (Rashid, 2021). There is no integrity, objectivity, professional competition, or confidential and professional behavior. These 5 codes help to define the outlook and framework of the whole company. Today there are many companies which are obtained the course and standard policy of the five rules and this is what is helping them in establishing a great revenue system. Also, the main point of conduct is trustworthiness is also very important in completing the framework of the company and the business. The fraud and violence observed, in this case, are what make the ethical issues to be highlighted the most. The company should always work under the act of the company and also should follow the mandatory asking rules and CSR responsibilities. The ethical dilemma and the prices of the company result in the drop downing of the company and its stagnant position.

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Conclusion

In the case of the scandal that enveloped American energy company Enron, it is clearly shown that the company has not followed the three principles rule of ethics. Also, it is found that social responsibility and the corporation Management by the government are also somehow missing in the case of the evidence of fraud and the misleading conception and the use of employees and stakeholders in doing unjustified things. “Business ethics involves carefully thought-out standards that guide decision making, whereas social responsibility can be regarded as a contract with society.”