Organizational Ethics

Running head: ORGANIZATIONAL ETHICS

Organizational Ethics

If someone on the street looked up at the giant tilted “E” in front of the Enron’s Corporation Houston-based skyscraper, one would have been awestruck. For inside this colossus of concrete and metal which reached high into the Texas sky, lied a seventh ranked Fortune 500 Company, a company that seemed impervious to the pressures of the competitive market (Everest, 2002). Enron had created a corporate culture that was envied by all. Within this culture, one would find confidence, pride, esprit de corps, and to the chagrin of the competition….arrogance. So what happened to this enviable company; this energy company that was one of the worldwide leaders (Everest, 2002)? What led to the fall of this billion dollar energy giant and its subsequent bankruptcy? Martha Stewart, or as she was earlier known as, Martha Kostyra, went from being one of six siblings, to the CEO of Martha Stewart Living Omnimedia Corporation where her net worth had reached over 650 million dollars (“Martha Stewart”, 2008). Not to shabby for a little Polish girl from Nutley, New Jersey. But, as we all have heard or read in the media, Martha Stewart wasn’t exactly the loveable little homemaker that we all thought she was. Martha Stewart was eventually indicted in 2003 on criminal charges and faced numerous law suits (“Martha Stewart”, 2008). Inevitably, Martha Kostyra was sentenced to 5 months in prison and paid a hefty fine for insider trading violations pertaining to some ImClone stock she sold. These are two perfect examples of how organizational ethics plays a vital role in today’s corporate America. It is the intent of this research paper to: 1) look at the facts in each of these cases, 2) address numerous ethical issues, 3) discuss...