Enron illustrates how large-scale ethics violations can cause the downfall of an organization and legal entanglements for executives. Enron filed bankruptcy and sold off many of its holdings.
Several executives face trial. The ethics violations failed to stop with Enron, but spread to its firm, Arthur Andersen, whose reputation was also irreparably tarnished for covering up Enron’s accounting wrongdoings.
Despite the eye that has been given to ethics abuse by large corporations, smaller businesses suffer most from fraudulent activities. Small organizations reported losses of up to 25 percent over those of larger organizations because of fraud.