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The Enron Scandal and the Neglect of Management Integrity Capacity

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  • Joseph A. Petrick
  • Robert F. Scherer
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    Abstract

    The nature, value, and neglect of integrity capacity by managers and the adverse impacts that Enron executive practices have had on a range of stakeholders are delineated. An explanation is given on how moral competence in management practice is addressed by each dimension of the management integrity capacity construct (process, judgment, development, and system) and how Enron executive practices eroded each dimension. Specifically addressed is how behavioral and moral complexity can be utilized to balance the competing values of management and ethics theories to reduce the likelihood of future Enron-like managerial malpractice. Finally, three positive action steps are recommended to improve managerial integrity capacity and remedies are proposed for victimized Enron stakeholders.

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    File URL: http://www.emeraldinsight.com/journals.htm?issn=1935-5181&volume=18&issue=1&articleid=1917819&show=abstract
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    Bibliographic Info

    Article provided by Emerald Group Publishing in its journal American Journal of Business.

    Volume (Year): 18 (2003)
    Issue (Month): 1 ()
    Pages: 37-50

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    Handle: RePEc:eme:ajbpps:v:18:y:2003:i:1:p:37-50

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    Related research

    Keywords: Enron; Integrity capacity; Management practice; Managerial malpractice; Moral competence;

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    1. Lehman, Glen, 1999. "Disclosing new worlds: a role for social and environmental accounting and auditing," Accounting, Organizations and Society, Elsevier, vol. 24(3), pages 217-241, April.
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    Cited by:
    1. Larry Boone & Christine MacDonald, 2009. "Broadcasting Operation Iraqi Freedom: The People Behind Cable News Ethics, Decisions, and Gender Differences," Journal of Business Ethics, Springer, vol. 84(1), pages 115-134, January.

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