In our Ethic Coursework thus far really one concept has stuck with me since I read it and it is that there is not just one standard. There are those written and unwritten. In class last week, we were to write about the Enron Scandal. I believe the unwritten standards have us focus on our personal morals and values. Enron had corrupt leadership that committed crimes both civil and criminal. If we assume that obeying the law is the most basic measure of ethical business behavior, understanding which laws apply to your activities and undertaking the diligence of knowing that requirement sis a fundamental step. Several times, it was discovered that Lay asked employees to continue unlawful practices.
Contracts and Agreements were not upheld for instance, the retirement plan for employees. Deliberate violations occur when one party to the contract willfully decides to violate some or all of the terms of the agreement. Because of the many contract violations and corporate activities that were questionable, the Sarbanes-Oxley Act was created. As for Industry Standards being violated, this happened on two levels, written and unwritten standards. They breached generally accepted accounting principles, which are written standards associated with accounting and auditing practices. They also abused unwritten standards by using inflated records to sell stock. One such employee purchased the second largest farm in Texas. When people violate an industry standard, there are only three things that can happen: (1) nothing: (2) they can be perceived as innovators: and (3) they can be perceived as disreputable.
When unwritten standards are violated it appears, we end up with court battles going all the way to the Supreme Court to make decisions for us. I have a very hard time when my moral values are decided for me or we have to have everything written because “our free will” is does not have a moral compass.
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