Ethics is a system of moral principle. Unfortunately, previously world renounced natural gas company, Enron, had no morals to begin with. It used prohibited accounting techniques to become the seventh largest company in the United States in 2001.

Although Enron had a solid business strategy, marketing plan and overall structure, it did disregard many laws and regulations. This raises an interesting question, should businesses that neglect the law learn to hide their scandalous truth, or work with a stronger sense of ethics?

A company may gross more money using illegal tactics, but is susceptible to be revealed as a fraud, which will force them into bankruptcy through legal troubles and a decrease in reputation. When Enron’s scams were revealed in 2001, it’s shares dropped from 85$ to 0.30$, and was investigated by the United States Department of Justice. As a company, Enron did have many strongpoints, but their lack of ethics ultimately lead to their demise as a business. This proves the importance of avoiding unlawful business procedures.