Essay Undergraduate 610 words

Ethics in Business: Enron's Fall and Fake Sales Tactics

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Abstract

This paper examines the relationship between ethical business conduct and organizational competitiveness. Drawing on Villanova, Lozano, and Arenas (2009), it identifies enhanced reputation and innovation opportunity as key benefits of ethical behavior, while also acknowledging the costs associated with increased reporting and transparency. The paper uses the collapse of Enron — and the criminal convictions of its top executives — as a stark illustration of how unethical practices destroy both organizations and individuals. A second discussion question explores a real-world example of deceptive pricing at a local furniture store, analyzing how misleading "sale" tactics undermine customer trust, damage reputation, and ultimately reduce sales through negative word-of-mouth.

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What makes this paper effective

Uses a high-profile corporate scandal (Enron) with specific factual details — names, sentences, and charges — to ground abstract ethical arguments in real consequences.
Balances academic citation (Villanova, Lozano & Arenas, 2009) with personal observation, demonstrating that ethical issues exist at every scale of business activity.
The furniture store anecdote is well-constructed: the student documents repeated visits, a pattern of rotating "deals," and a salesperson's candid admission — all of which build a persuasive first-person case study.

Key academic technique demonstrated

The paper employs a two-scale comparison technique: it pairs a macro-level corporate ethics case (Enron) with a micro-level consumer experience (local furniture store) to show that ethical failures manifest across all business contexts. This contrast strengthens the argument by preventing the discussion from remaining purely abstract.

Structure breakdown

The paper opens by surveying the benefits of ethical conduct, citing peer-reviewed scholarship before pivoting to the costs. It then uses Enron as a concrete negative example. The second half shifts to a personal narrative about deceptive retail pricing, applying the same ethical framework to show how even small-scale dishonesty damages reputation, customer relationships, and long-term revenue. A references section closes the paper in APA format.

Benefits of Ethical Business Practices

The benefits of conducting business in an ethical way are varied. Increased competitiveness is one such benefit. Ethical businesses enjoy an enhanced image and reputation. Villanova, Lozano, and Arenas (2009) surmise that organizations pursuing a positive image and reputation are more competitive than their counterparts. Those corporations with an enhanced reputation have more opportunities for innovation, which furthers their competitive advantage.

One only has to look at the results of unethical business practices and the downfall of Enron to see how unethical practices can destroy both the organization and its executive officers:

Enron as a Case Study in Unethical Conduct

Jeffrey Skilling — former Enron CEO — was sentenced to prison and ordered to pay $45 million in restitution.

Kenneth Lay — Enron founder — was convicted of conspiracy and securities fraud.

3 Locked Sections · 395 words remaining

Costs of Operating Ethically · 80 words

"Transparency and reporting increase operational costs"

Deceptive Pricing: A Local Furniture Store Example · 185 words

"Furniture store rotates fake discounts to deceive shoppers"

How Unethical Behavior Hurts the Business · 130 words

"Lost sales and damaged reputation follow unethical tactics"

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Key Concepts in This Paper

Business Ethics Corporate Reputation Enron Scandal Ethical Competitiveness CSR Deceptive Pricing Consumer Trust Transparency Costs Word-of-Mouth Corporate Fraud