Enron

Enron Corporation

Sherry Barbour

LEG100-021016

Professor Daniel Smith

January 14, 2011

Enron Corporation

Describe how Enron could have been structured differently to avoid such activities.

Enron had a code of ethics policy in place but failed to implement it correctly (Bagley, C.E. & Savage, D.W., 2010). An enforced code of ethics policy, which includes required annual ethics training, is crucial in setting standards for employees in regards to their ethical behavior. It reminds all employees that they need to think about how they conduct themselves on the job. Here at NASA, we have a code of ethics policy and annual ethics training. NASA’s ethics training is a required course that all employees must take. Training informs all NASA employees of what is and is not acceptable behavior. Along with the enforcement of a code of ethics policy and training, Enron needed to be structured so that people could safely come forth if they witnessed any illegal or unethical actions. Of course, the Sarbanes-Oxley Act, which makes it easier for employees to come forth, did not pass until after the Enron scandal. Another way that Enron could have been structured differently was to have a better way to scrutinize the activities that went on at Enron. That is, structure the company so that daily activities could be closely monitored. A separate group could have been created to do some internal monitoring of the activities at Enron. The things I mentioned would have been helpful in developing a better culture at Enron and could have helped limit such activities. However, these things would not have stopped the fraudulent activities that took place at Enron but they could have made the individuals think twice about their actions. If some of these were in place at Enron, then maybe the illegal and unethical activities would not have gone on for as long as it did.

Discuss whether Enron’s officers acted within the scope of their authority.

It is my...