Analyzing Ethical Behavior Essay

In the course of this report, it will show the comparing of the honourable aspect of two well- cognise corporate giants, Enron and Bernie Madoff. The first pillow slip Bernard Lawrence Bernie Madoff, Broker, Investment guru, Financier. Once herald as a monetary king, he in his reign overnight turned white collar criminal, which take to a quick and easy demise. Second, Enron sess, known for energy and commodities, services, and well known for being a major diddleer in the electricity and natural gas, and communication, pulp and paper play along, crumbled to its knees into bankruptcy in the early 2000s.The question is, at the height of both these two companies, what went wrong. Where was the ethical partitioning? The who, what when and the why will be the focus of this report. Bernie Madoff, former chair of NASDAQ, started his parent caller on Wall Street Bernie L. Madoff Investment Securities LLC, 1960 it was as the top of its game-bypassing firms who were specialist in the field of finance. Hijacked by Madoffs firm with their signature OTCoer the Counter orders with brokers.The company employed family and close friends that comprised of his brother Peter, Managing Director, his niece (peters daughter) Shana Madoff, contour officer and attorney, and his two sons Mark and Andrew. It was told by Madoffs sons that their father made damaging statements, and confessed to them that the business was a lie, that it was a Ponzi organisation from the beginning, which led Federal agents to arrest Madoff, and all those involved. Madoff told authorities that the scheme began in 1990, precisely according to the FBI, it was started early as the 1970s.It has been reported that Madoffs mental testing of deceit led his scheme to accumulate as much as $65 jillion, with a reported estimate loss to investor of $18 billion. Reports of ethical violations by upper level managers continue to multiply despite increase attention being given to ethics by firms and business schools. lots of the analysis of these violations focus on either these managers privation of operation principles or their willingness to abandon principles in the face of competitive pressures (Ludwig, 1993). Enron Corporation is the second in this detailed report of the fall of power.Traded on the big board ENE, and based in Huston, Texas was an energy, commodities, and services company. For six consecutive years, Enron was named by fact Magazine as Americas Pioneering Business, with claimed revenues of $101 billion in the year 2000. What do most companies base their ethics upon Enrons cipher was one of Respect, Integrity, Communication and Excellence, described as treating others as they would be treated. Apparently they did not abide by that one in exceptional because as we go through this report, it will soon show the where the breakdown began.Integrity, working along with customers through honesty, Communication, obligated to interconnect with one another, Excellence, no n accepting anything less than the best in all that we do. These are on the nose a few statements from Enrons code of Ethics handbook. Given this code along with the assurance to professional ethics, it causes one to ponder these questions. How could a company dramatically collapse with reported revenues of $101 billion? With an increase the first, collar quarters in 2001, falling into major bankruptcy in declination of that same year.Could it be that the answer to these questions is a failure of the top leadership, a corporate culture caused the demise in its ethical beliefs along with the complicity of investors and the financial institutions? Enrons corporate culture is described as having an appearance of self-assertion that caused the public to trust that they could handle the risk without stumbling upon any danger to the company and to investors. This type of thought would make one not to sleep at night, alone the implicit message from Enron was make the numbers, if you a re caught stealing or cheating, ask for another chance, you may get one.You can see that Enron did not do anything to promote integrity nor respect it was undermined by the companys emphasis on reorganization, presentation, reparation and its considerations. To conclude, the answer as to why chief executive officers have bilked their companies and investors out of billions of dollars and brought a collapse of hundreds of corporate giants, it is because wrong and criminal behavior is the morals by which they do what they have do are doing, even as this report is being written.An epidemic could take off and if nothing is done about itthen the American system of last Finance and Big Business will crumble to a riot Holt and affect this countrys economy. God forbid. Destructive leaders can cause hardship not only to immediate followers, but to the broader population. For example when a large company struggles financially, it is not only employees, but customers, suppliers, and shar eholders that are negatively affected. The cognitive processes employed by the leader play a large role in how he or she gathers information, interprets it, and makes decisions toward a course of action (L. Eubanks, 2010).