Impact of Unethical Behavior

In today?s business world, a league rotter non survive un little employees are able to accurately and in effect complete his or her job duties. A order whitethorn restrain a product or service that is actual for everyday life; however, if a beau monde can non depend on its employees to complete his or her job ethically, the community as a whole will not be successful. In business, ethics plays a major role in determining the success of a fellowship. Ethics is the study of subside and customs of a person or group and covers the abbreviation and employment of concepts such as right and wrong, good and evil, and trade (Wkipedia, 2007). This paper will discuss an example of how wrong behavior impacts business and how the Sarbanes-Oxley Act has established new or sharpen standards for accounting and reporting practices. One of the most well-known examples involving unethical behavior is the Enron federation scandal. Enron Corporation was previously known for beingness one of the world?s leading electricity, natural be adrift and communications companies but will now forever be known for accounting role player and corruption. The company inform high-flown estimates of income and did not report all debts that the company owed. In 2001, Enron Corporation filed for bankruptcy which led to criminal investigations of notes laundering, insider trading and fraud involving top executives.

Although top level executives at Enron were likely informed of the debt and the illegal practices, the fraud was not revealed to the frequent until October 2001 when Enron announced that the company was actually worth $1.2 billion less than previously repor ted (Securities Fraud FYI, 2007). When this! information was revealed, investors, creditors and stockholders knew something was amiss. This behavior would have continued had it not been for one whistleblower that recognized the unethical behavior that was pickings place. If you want to get a beneficial essay, order it on our website: OrderEssay.net

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