Enron Corporation Essay

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Enron Corporation Business Law Enron Corporation Describe how Enron could have been structured differently to avoid such activities. Enron could have been aware of the agents are doing to avoid all the scandals that were going on in its company. Enron should have never used its stock value as collateral to obtain loans from its partnership. The partners in the corporation should have known that these techniques were unethical as well as illegal. As stated by Gilman, Hamed, Navran & Brown (2010), the ten things a company can do to avoid being the next Enron includes: Examine your ethical climate and put safeguards in place - Corporations are composed of cultures. Take a good close look at your culture. Don’t just print, post, and pray - Codes of conduct need to be actual living documents encouraged and valued at the highest levels. Build a robust ethics infrastructure that is self-sustaining. Writing a code of conduct, supporting it at top levels and communicating it to employees is just a start. Publicly commit to being an ethical organization - Corporations that are open about their ethical standards and conduct seem to be more trustworthy than those who stay silent. Separate auditing from consulting functions - Allowing Arthur Andersen to both audit and consult with Enron created at least an appearance of a conflict of interest. Talk with employees at all levels often – Failure to communicate causes far more pain than smashing your thumb with a hammer. Build ethical conduct into corporate systems - Define your position as an ethical business. Provide employees and customers with a written pledge. Establish an Ethics Committee to constantly keep the organization focused on the seven main provisions of the Federal Sentencing Guidelines of 1991 in mind - The Federal Sentencing Guidelines that became effective on November 1, 1991

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