This essay presents a unique analysis of the infamous Enron scandal.
Written in 2002; 1,657 words; 1 sources; MLA; $ 53.95
Paper Summary:
This essay puts Enron's actions into context by introducing the concept of the "non-market" environment (as opposed to the typical market environment). It focuses on one particularly well-known firm's participation in the non-market environment and explains how Enron became well-known, and ultimately infamous, for its efforts in this regard. Furthermore, this paper analyzes a number of moral philosophies which can be applied to some of the key participants in the Enron scandal.
From the Paper:
"Firms participate in the non-market environment (NME) for a number of reasons. First, the NME activities in which a firm engages can strongly influence its bottom line. For instance, firm operating in an industry that stands to be largely impacted by evolving legislation will have great interest in engaging the NME (say, through lobbying) to affect how that legislation develops. Second, firms often find that their enemies in the market environment (e.g., competitors) can be their friends in the NME. For instance, they may join efforts (and thus spend less individually) to influence legislation by forming a trade association or by supporting particular narrow interest groups. Third, engaging in NME activities, like rallying the public to their cause through carefully crafted media campaigns, can help companies "write the rules" that affect their market environment (provided that public sentiment, if won, translates to favorable government actions). Fourth, a firm may strive to craft a competitive advantage for itself by acting outside the market arena. This might involve a particular oil producer hiring an advertising agency to impart a "we care" impression upon an environmentally conscious public, which in turn buys more gas from that company's gas stations."
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