Case project Study Example | Topics and Well Written Essays - 1500 words

Project - Case Study Example Basically, Enron Corporation was established in 1985 and it dealt with issues related to energy. The executives practised off-book accounts which negatively impacted on the operations of the organisation. The executives of the company capitalised on the use of loopholes in the accounting system as well as poor financial reportage Hanson (1). Debts amounting to billions of dollars in projects and deals which did not succeed were hidden in the process. The company misrepresented its financial statements in order to portray a positive picture to the shareholders about its performance. Interestingly, the company sought to appeal to investors through falsehoods. In actual case, this was not the situation obtaining on the ground given that it hid its financial statements from public scrutiny. Such practice was blessed by the Chief Financial Officer, Andrew Fastow and other executives. The system adopted by the organisation in its operations contributed to a malfunction of the corporate culture. Emphasis was shifted to short term earnings which resulted in bad accounting practices. This came to light when the company refused to be censured about its performance by its unwillingness to reveal its balance sheet as well as other financial records. This practice is mainly viewed as unethical in business. The concept of ethics plays a significant role in shaping the operations of an organisation in different situations. Basically, business ethics refers to the values, principles and standards that operate within business and these attempt to make a distinction between something that is morally good from bad (Rossouw, 6). The value system of an organisation mainly shapes its ethical code of conduct. Thus, Desjardins (5), describes values as â€Å"essential and enduring tenets† that help define the company and are â€Å"not to be compromised for financial gain or short term expediency,† (DesJardins 2006:5). The opposite is exactly