“Every business lies about its ethics” Enron suffered a horrible loss because of their lack of ethics. Enron was a fast growing American energy, commodities, and services company based in Houston, Texas. The company’s worth was $70 billion. Enron was founded in 1985 but then in 2001 they were finally caught by the Securities and Exchange Commission (SEC) for knowingly manipulating accounting rules and masking the enormous losses and liabilities of the company. When a company does not establish rules of ethics that company like Enron will no more be in business. If Enron were to play by the rules their company would have still been in business and so would have Arthur Andersen. Enron lied about being ethical we could tell by the profits that Enron was making within a small span of time. Once the company Enron knew that they had made committed too much fraud they tried to cover it up with bringing Arthur Andersen, one of the big five accounting firms in the world. Enron convinced Arthur Andersen to money launder their money but since their profit margins were too high the SEC became very suspicious of this amount of money Enron was profiting. In the business world no one is forced into committing these crimes; Arthur Andersen had the choice to decline the offer from Enron to help them with money laundering but because they had no ethics they joined alliances with Enron. Once Enron fell apart they brought Arthur Andersen down too. Enron went bankrupt because of all the dues and imprisonment of the CEOs and Arthur Andersen was destroyed with the bad reputation that no company wanted them to do check their books.
Corporations find ethics to be a drain on profits; but every corporation claims to promote strong business ethics. Businesses promote that they are truly ethical but how can we believe and trust big time companies when their fraud crime scandals were announced to the business world. Most of the big companies say that they are ethical but in reality there aren’t from what we see on the Forbes website most of the world’s top ethical companies are not the very big ones makes tons and tons of money every year. If we were to trust a company I’d say it would have to be a small one because all the big companies get away with almost anything just like Enron did for 12 years. For example Wells Fargo a well known bank and is one of the largest banks in the United States though it is not on the list and why is that because they created thousands of phony accounts to be able to make a profit and meet their margins. These phony accounts were opened up in several of different customers accounts without them noticing. This was a very unethical action that Wells Fargo employees did, I see it that in this world to more about making profit then having ethics.
That’s exactly what happened to Wells Fargo customers nationwide. “5,300 Wells Fargo Employees Fired over 2 Million Phony Accounts.” CNNMoney, Cable News Network.
Kauflin, Jeff. “The World’s Most Ethical Companies 2017.” Forbes, Forbes Magazine, 14 Mar. 2017.
Investopedia. “5 Most Publicized Ethics Violations By CEOs.” Forbes, Forbes Magazine, 5 Feb. 2013.
Tribune, Chicago. “Ties to Enron Blinded Andersen.” Chicagotribune.com, 12 July 2008,