Enron

LEGAL AND ETHICS ISSUE ON

E N R ON

I . Legal and Ethical Issue A . What specific issue are you writing about

There had been numerous and massive corporate frauds for the last fifty years such as the Lincoln Savings Loan , the BCCI bank failure and the Enron scandal which have raised several legal and ethical questions . One point in case , is the issue raised concerning a lawyer 's responsibilities when the lawyer has learned that officers of his corporate client are engaged in illegal business or involved in conduct

that violates the law

B . What are the legal and ethical implications raised

When corporate executives who are engaged in fraudulent acts harmful to the company , company shareholders or other third parties come for assistance to escape legal and civil liabilities , a lawyer or law firm 's dilemma would be either to protect his client or would either adhere to his responsibility to the court or the general public . Certain law firms have assisted in the settlement of civil liabilities of less publicized frauds but have denied assistance or participation in the fraud . But two law firms namely Vinson Elkins and Kirkland Ellis are facing lawsuits who had been involved in the Enron affair (R . Crampton . Enron and the Corporate Lawyer : a primer on legal and ethical issues

C . Why is this issue of particular importance to you and /or organization

This issue is of personal primary importance since we are daily engaged in making decisions that have moral implications incumbent on anyone who is a part of an organization whether for legal or business reasons . I believe that it is important that one understands his /her ethical obligations in meeting the organization 's expectations while modeling the appropriate behavior for others . It is important that standards should be set for judging right from wrong , of knowing how to act fairly and honestly in individual or in group decision making (B . Gross Ethics and People Management

D . Why is the issue of importance to contemporary society

Corporate scandals such as the Enron affair and other recent corporate scandals like Adelphia , Dynergy , Tyco , Xerox among others have brought down investor and public confidence in the integrity , reliability of corporate executives and the market that creates and builds American capitalism . For as long as greed among corporate executives , laziness on directors and mere compliance among lawyers persist , reforms will not suffice unless accountability be enforced specially upon lawyers who violate legal and ethical rules . Such practice must be curtailed , since this will restore the confidence of investors and even uplift the morale of employees necessary for a healthy and productive company , and robust economy

II . Facts A . What is the organizational or personal background of your issue

The goals and objectives of a law firm are substantially different from that of a commercial or industrial enterprise . Reasons lie in the nature of the services which law firms provide for their clients and the way with which legal firms market these services...