Please post a response about a company that you believe is not acting in an ethical manner. Provide facts. Post must be 250 words minimum
Original post due by end of day Friday
Respond to at least 2 other posts by end of day Sunday. Response post is 100 words minimum
First Repond:
Enron executives view the role of finance within their company as a means to deceive not only their employees and business partners but also their stock holders in order to better themselves. I do not think it was their intent to better themselves when they first started misleading the public. They probably had a bad year initially, and realized if they changed their accounting practices to a fair value accounting style they would appear profitable. Fair value accounting uses estimates of the potential market value of something. When the next year came and the estimated value placed on their assets fell short, Enron was in even deeper than the previous year, and the losses started to snowball. Instead of coming clean about its financial situation, Enron again deceived shareholders by shuffling its debts and losses around, so it could appear profitable.
Clearly, Enron did not adhere to issues within its agency, especially with its lack of compliance to corporate ethics. Simms and Brinkmann (2003) write in the Journal of Business Ethics, "Enron in practice created an organizational culture that put the bottom line ahead of ethical behavior and doing what is right" (p. 243). On paper, Enron had a corporate ethics policy to be modeled after, but in practice the executives did not adhere to it. Once executives realized Enron was going down they focused more on their own financial gains rather than its employees and stockholders by telling them to hold onto the stock while they are cashing out on theirs. As evidenced by the sharp decline of its stock price and its eventual bankruptcy Enron needed to make changes.
Sims, R. R., & Brinkmann, J. (2003). Enron ethics (or: Culture matters more than codes). Journal of Business Ethics, 45(3), 243-256. Retrieved from https://ezproxy.msoe.edu/login?qurl=?url=/docview/198149843?accountid=9445
Second Respond:
1. J.P Morgan Chase is global financial services firm. Established in 1799 in New York it is one of the oldest banking institutions in the world. It is also the largest bank in the United States with assets over $7.4 trillion. Offering banking services, and financial services, JP Morgan Chase has operations in over 50 countries. They have 6 major businesses: Investment Bank; Retail Financial Services; Card Services; Commercial Banking; Treasury & Security Services; and Asset Management. In this regard JP Morgan Chase is greatly involved in finance throughout their operations. In this regard JP Morgan Chase is greatly involved in finance throughout their operations.