Week 1 Ethics in Business

Ethics in Business

Large companies are sometimes guilty of unethical behavior. Often this unethical behavior takes the form of false or misleading financial statements. In one of the largest corporate fraud cases in history, energy giant Enron Corporation was forced to file for bankruptcy in December 2001 amid allegations that the company's financial statements were deliberately misleading and false. Enron's bankruptcy not only destroyed that company, but its auditor Arthur Andersen as well.

The difference between ethical and unethical behavior can sometimes be murky. For example, many U.S. companies have relocated to Bermuda because Bermuda has no corporate income taxes. There is nothing illegal about doing this, but is it ethical? Hard to say.