Enron and WorldCom have caused many voters to require a skeptical view of enormous corporations. The managerial negligence that has been brought to light in recent years has caused global distrust of the U.S. financial markets. The economic impact of those scandals, combined with distrust, has taken a financial toll on many U.S. investors.
As evident within the Sarbanes-Oxley Act, the U.S. government is doing more nowadays to shield citizens against unethical corporations.
Attempts are made by creating new regulations, requiring more stringent accounting practices, encouraging a rise in transparency, and protecting people who revolution with information regarding corporate wrongdoings.
The cynical view of business ethics within the u. s. has caused organizations to travel above and beyond what was worn out the past to make sure that ethics are being enforced. As seen with MCI, corporations are now creating positions for chief ethics officers. Tyco is another company whose past questionable ethics led it to make this position within the organization.
But will these moves toward stringent ethical policies be enough to convince the planet that U.S. companies are ethical? a replacement term has been created: “Enron ethics,” meaning an ironic difference between a company’s outwardly ethical appearance and its internal ethical failure. From the skin, Enron gave the impression to be a model company, with its corporate social responsibility practices and thick book of ethical guidelines that was handed bent on employees, while on the within, the corporate was falling apart thanks to its faulty accounting practices.
But Enron managed to tug the wool over the public’s eyes for years. It’s difficult for people to trust that other companies don’t seem to be doing the identical.
