嘉文博译-写作中心原创写作案例

Drawing on current events, discuss the relevance of market forces and government regulation on corporate values. Stake out your position on this issue and support your argument with specific details and examples. (500 words)

One of the most recent events that exemplifies the unavoidable collision between market forces, government regulations and corporate values is the Enron/Arthur Andersen accounting scandal and its ongoing fallout. At the time of Enron's filing, it was the largest bankruptcy filing in history with tragic economic results for both employees and stockholders. Looking at it from a legal standpoint, some of the most intelligent graduates of the world's leading business schools went down a path filled with lies, arrogant actions and betrayals of trust, apparently aided by one of the world's leading accounting firms, Arthur Andersen.

From my perspective, government must play a very important part in adapting to the corporate behaviors that resulted in the Enron scandal. Executive misconduct must be better defined and punished more severely. Conflicts of interest must be stopped before they start. Worker's retirement plans must be saved from the mismanagement of those higher up on the corporate ladder. The federal government should lead the way by setting a better example of transparency with its own finances.

The Enron scandal has revealed many problems in the corporate world that were easy to ignore when the stock prices of the company were skyrocketing. As long as everyone was making money, people were willing to either overlook or at least not look too closely at exactly how this money was being made. One of the problems that is most glaring in the light of the burning embers of Enron is the lack of appropriate governmental regulations coupled with loose enforcement of the laws that were already in existence. Moreover, strong ties between the corporation's executives and government officials have further complicated the problem while adding fuel to the anger of the employees and stockholders who lost everything. Stronger enforcement of current laws along with additional legislation will be necessary to ensure that an Enron-type scandal does not erupt again.

It should be noted, however, that laws and regulations alone cannot cover every conceivable angle where executives might be able to follow the letter of the law, but still make unethical business decisions. No matter how many laws are enacted, human conscience and a sense of what is right and wrong will ultimately be the guide that must be followed. Ethics must be held up as paramount in business.

On the business side, there needs to be increased transparency in accounting practices, which is already starting to occur in other companies that are feeling the anger over the Enron scandal in their own stock practices. Stakeholder incentives should also be broadened, so that a high stock price does not become the all-consuming goal. Enron, WorldCom and others have taught us all that ethics do matter.

In summary, governmental regulation and market forces together are required to keep corporate values in line with those of the ordinary citizen. It is unfortunate that it took such large and expensive scandals to turn the tide, but it has become imperative that businesses operate under strong and ethical overall corporate values.