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Re:Module 2 DQ 2 rely 3
Write an initial substantive response of 50 words in length. Begin your response with a restatement of the question/prompt, and include in-text citation(s) and a reference for each scholarly source used according to the APA guidelines found in the APA Style Guide located in the Student Success Center. The restatement of the question/prompt, the references, and the citations are not included in your response word count.
Review the Enron case information presented in the textbook.
Jeffrey Beavers
According to Johnson (2005), Enron’s case reveals that they had a “beautifully written” code of ethics but leaders were able to still talk the board of directors of making an exception for an “off-the-books” financial deal, leading to corruption and eventual bankruptcy. This example is a case where internal pressures and group think allowed leaders to make the corrupt decision.
It’s difficult to know all of the pressures that were on these leaders or even their board of directors but a place to begin would be looking at how familiar leaders were with the code of ethics and how often they were discussed, read, agreed upon.
In my experience often the code of ethics sit in a policy book (now mostly in a pdf. somewhere on the website of an organization) and is referred to by human resources with new hires and perhaps an annual meeting. Complacency can lead to mission drift and grave errors. If the code is not visited and discussed often than it’s not living and breathing nor useful for guidance. One thing they could help is to have chief executives and top administrators make it a priority to discuss and enforce the code of ethics often. The board of directors should also read, approve and discuss the policies and code of ethics annually at minimal.

References

Johnson, C. E. (2005). Meeting the ethical challenges of leadership: Casting light or shadow. Thousand Oaks, California: Sage Publications.