Enron's Case Study-CSR & Ethics Theories

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Enron's Case Study-CSR & Ethics Theories

Introduction

The rapid globalization across the world and the emergence of the technology has increased the chances and opportunities for the businesses to expand. Many businesses have got the high times to increase and expand their operations both on national and international levels. Thus, these opportunities have somehow affected the principles and workings of the corporate social responsibilities (CSR) and the business ethics. The following essay will evaluate the workings of the different theories of corporate social responsibilities and business ethics through the business case analysis of Enron.

Discussions

The workings of the businesses in the corporate social world have affected the principles of the corporate social responsibilities (CSR) and the business ethics. The principles of CSR are discussed in the details with the example of the company Enron.

Enron- The Company Background

Enron was the Houston based company that has been operated efficiently and effectively because of the company's chief executive officer's efforts. The following case study has graphed the hype of the success of Enron to its decline and fall. There have been many changes in the structure of the company as well as the planning and the decision making, but the concern for the following essay is to evaluate the company Enron on the parameters of the business ethics and corporate social responsibilities (CSR). We will try to explore the impact of implementing CSR (Corporate Social Responsibility) on enhancing the business value of Enron. CSR has driven the paradigm of the company to a new direction for managing the relationship with customers. Customer relationships management intends to strengthen coordination between the company and its customers to improve relationships through the credence components of the customer relationship.

Corporate Social Responsibilities (CSR)

Corporate social responsibility (CSR) can be defined as the active and voluntary contribution to improving social, economic and environmental by companies, usually with the aim of improving their competitive position and valuation and its value added. The performance appraisal system across the organization in these areas is known as the triple bottom line. (Cairncross.1995)

Corporate social responsibility goes beyond compliance with laws and regulations, assuming their respect and strict compliance. In this sense, labor legislation and regulations related to environment are the starting point with environmental responsibility. Compliance with this basic policy does not correspond to social responsibility, but with the obligations that any company must meet simply because of your activity. It would be difficult to understand allegation by a company CSR activities have not completed or does not comply with the legislation referred to his activity. (Cairncross.1995)

Under this concept of administration and management encompasses a set of practices, strategies and business management systems that seek a new balance between economic, social and environmental. The history of CSR can be traced back to the nineteenth century under the Cooperatives and Associations seeking to reconcile business efficiency with social principles of democracy, self-help, community support and distributive justice. Its exponents today are company's social economy, by definition socially responsible ...