Enforcing regulations and penalties is important, but a clear message from Enron and other business scandals is that creating and fostering an ethical culture—and not rule changes alone—is the only effective way to prevent wrongdoing. It is a sad fact that Enron had a model ethics program with guidelines well-known by employees. The organizational values widely-recognized by the acronym RICE —Respect, Integrity, Communication, and Excellence—are terrific principles for any organization. The problem is these values were not alive in Enron’s culture in the way they needed to be.

R. Edward Freeman
Academic Director, Business Roundtable Institute for Corporate Ethics
Elis and Signe Olsson Professor of Business Administration, The Darden School

We live in the age of transparency. Managers should assume that the public will learn how they have conducted business—and, in the end, you can not fake value creation. Falsely reporting financials to meet short-term earnings expectations is a death spiral that destroys companies—period.

Dean Krehmeyer
Executive Director, Business Roundtable Institute for Corporate Ethics

The Enron case teaches us that the business "paradigm" never changed as some would have had us believe.  Ethical business practice requires commitment to honesty and transparency as it always has. 

Linda K. Trevino
Academic Advisor, Business Roundtable Institute for Corporate Ethics
Professor of Organizational Behavior and Cook Fellow in Business Ethics, The Pennsylvania State University

It provides a reminder that the temptations for cutting corners and defrauding others are great. That power, money, and knowledge can foster arrogance and a sense of entitlement that lead to truly shocking behavior.

Andrew Wicks
Academic Advisor, Business Roundtable Institute for Corporate Ethics
Associate Professor of Business Administration, The Darden School