By now, you should be very familiar with the Enron case. In the Module 4 SLP, we will evaluate
the Enron debacle in the context of Corporate Social Responsibility. Specifically, socially
responsible organizations behave in certain, ethical ways. Socially responsible organizations tend
to go above and beyond the rules, mores, and expectations that have been established (and that
are expected to be adhered to) by the general public, company employees, end customers, buyers
and suppliers, and the government, for example. We will investigate the ways in which Enron
defied the tenets of “socially responsible” behavior.
Required Reading
Read the following excerpt related to CSR. As you read, consider the benefits realized by
socially responsible organizations, and how the leadership at Enron operated counter to CSR
tenets:
Corporate social responsibility. (2013). International Institute for Sustainable Development.
Retrieved from https://www.iisd.org/business/issues/sr.aspx
Assignment
In a well-written, 2- to 3-page paper, discuss how the Enron case informs our understanding of what it
means for companies to be “socially responsible.”
Keys to the Assignment
1. In the context of CSR, in what ways did Enron demonstrate – not social responsibility –
but social irresponsibility? Consider how the company’s actions ran counter to the tenets
of CSR through its neglect of duty to the company’s shareholders, its employees, and
even the larger public trust. Be sure to cite specific examples.
2. What have been the long-term consequences of Enron’s actions, and how did the
company’s implosion change our view of what it means for a company to be “socially
responsible”?
3. Be sure that you use at least two references from the library, and that you properly cite
your sources.
4. Follow the guidelines in The Student Guide to Writing a High Quality Academic Paper
5. You are expected to demonstrate evidence of critical thinking – as defined in the Module
2 background materials and the grading rubric.
Tips and Suggestions
Consider cause and effect when you discuss the longer-term consequence of the Enron case.
Major corporate scandals – like the Enron scandal – most often result in increases in regulation,
and in more oversight and scrutiny of other organizations. Consider, for example, how
manipulation of the financial statements brought about vast increases in government regulation
(e.g., Sarbanes-Oxley Act of 2002) and oversight of the financial reporting of publicly-held
companies. Certainly, the Enron collapse spawned renewed attention to the efficacy of
professional accounting standards and related-party transactions (and even Enron’s “mark-tomarket” accounting practices). Alternatively, you might discuss how the complicity of the
company’s auditors served to refocus the public’s attention on what it means for auditing firms to
be truly “independent.”
