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...

The law makes it difficult for itemizers to deduct medical expenses. To reap any write-off, you must pay bills that aren't covered by insurance, reimbursed by employers or otherwise satisfied by, for example, a company-...
Drug patents held overseas can pare makers’ tax billsAs the Obama administration tries to stop companies from avoiding taxes by moving their headquarters overseas, the makers of some of the world’s most lucrative...
Starting in October, the IRS will send warning letters to tax return preparers who appear not to be complying with Earned Income Tax Credit (EITC) due diligence requirements.Section 6695(g) of the Internal Revenue Code...

Already a member? log in here.

Upcoming CPE Webinars

Oct 9In this jam-packed presentation Excel expert David Ringstrom, CPA will give you a crash-course in creating spreadsheet-based dashboards.
Oct 15This webinar presents the requirements of AU-C 600, Audits of Group Financial Statements (Including the Work of Component Auditors).
Oct 21Kristen Rampe will share how to speak and write more effectively by understanding your own and your audience’s communication style.
Oct 23Amber Setter will show the value of leadership assessments as tools for individual and organizational leadership development initiatives.