Has Enron Made Companies More Ethical?

There has been a dramatic five-year increase in how employees perceive their company’s ethics, according to a new national business ethics survey from global employee research and consulting firm ISR.


Advertisement



Over 400,000 customers use Monarch to transform any report into live data. No more re-keying data into spreadsheets, no need for IT help! Download our white paper today!


“After the SEC began investigating Enron’s accounting scandal in 2001, ISR documented an increased interest in better understanding the role ethics plays in a company’s culture, from identifying potential land mines to determining how to make improvements before a crisis occurs,” ISR Executive Director Adam Zuckerman said in a prepared statement.

The study, which is based on data gathered from more than 200,000 U.S. employees and examines issues of integrity, social responsibility and company values, found that employee opinions on company integrity increased a dramatic 11 percent between 2001 to 2005. The findings show that American employee awareness of corporate integrity, social responsibility, and corporate ethics issues have all increased since 2001.

The study’s results indicate:

  • The number of employees responding positively to the statement “My company is socially responsible in the community” has increased by 7 percent since 2001.
  • Employee perceptions of internal corporate values increased 4 percent, to 82 percent in 2005.
  • Perception of management’s consistency with stated internal values has increased 5 percent, to 65 percent in 2005.

“Overall, these figures show there is reason to be optimistic about the improving state of ethics in corporate America,” Zuckerman said. “Knowing where to focus your efforts is half the battle, and companies are clearly paying more attention to ethics.”

You may like these other stories...

Legislation coming out of Washington just might reduce homeowners' burden for disaster insurance. It's a topic very much on everyone's minds since the mudslide in Oso, Washington. The loss of human life was...
Divorce is hard, and the IRS isn't going to make it any easier. The IRS generally says "no" to tax deductions that might ease the pain of divorce. In certain circumstances, however, you might be able to salvage...
IRS chief: New rule on the way for tax-exempt groupsIRS Commissioner John Koskinen told the USA Today on Monday that the agency will likely rewrite a proposed rule regulating the political activities of nonprofit groups to...

Upcoming CPE Webinars

Apr 17
In this exciting presentation Excel expert David H. Ringstrom, CPA shares tricks that you can use with pivot tables every day. Remember, either you work Excel, or it works you!
Apr 22
Is everyone at your organization meeting your client service expectations? Let client service expert, Kristen Rampe, CPA help you establish a reputation of top-tier service in every facet of your firm during this one hour webinar.
Apr 24
In this session Excel expert David Ringstrom, CPA introduces you to a powerful but underutilized macro feature in Excel.
Apr 25
This material focuses on the principles of accounting for non-profit organizations' revenues. It will include discussions of revenue recognition for cash and non-cash contributions as well as other revenues commonly received by non-profit organizations.