Effect of Unethical Behavior Article Analysis

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Effect of Unethical Behavior Article Analysis March 28, 2012 Professor John Johnston Effect of Unethical Behavior Article Analysis Ethics: A consciousness of moral importance, a set of moral issues or aspects, the principles of conduct governing an individual or a group, a set of moral principles. To have ethical values is to have a deep sense of responsibility to self and to others (Webster’s Dictionary). When employees practice unethical behavior in the workplace, they are in a sense, displaying a lack of respect not only for themselves, but showing a great deal of disrespect for the company the employee work for. This can further be complicated when dealing with the funds of a company. The repercussions not only affect the company, but also clients, and employees. No greater case has proven this like the Enron Scandal. Enron was an energy trading and communications company based in Houston, Texas. Enron employed 21,000 people by June 2001. Enron was accused of misrepresenting the earning reports. Enron lied about its profits as well as rumors of a number of shady dealings. Enron was also accused of concealing debts so that these debts did not show up on the company's accounts records. There were also rumors of embezzlement of funds from the executives. Shares from Enron dropped from over $90 in the United States to $0.30. This was kept from all investors as well as potential investors who invested in Enron because the inflated financial gain the company was reporting. Due to these unethical accounting practices, it cost both trustees and employees $2 billon dollars. This includes: 1. misappropriated investments, 2. pension funds, 3. stock options, and 4. saving plans (Healy & Krishna, 2003). Sarbanes–Oxley, Sarbox or SOX, is a federal law in the United States. It has new or enhanced standards for all U.S. public company boards,

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