CAPITALISM AND ITS HARM ON THE ENVIRONMENT – THE CASE OF ENRON
The case of collapse of Enron illustrates how profit seeking behavior led to neglect of human values for both executives and employees.
The Case of Enron
Business doe not operate in vacuum. They operate in an environment where they have to meet their obligations towards different stakeholders. A business should not be perceived like a personal asset but rather an entity in which many people depends on. According to the shareholder theory, a business must meet its obligation towards all stakeholders who include investors, customers, employees, management, surrounding communities, and the environment. Shareholders expect to get profit from their investment, customers expect goods and services, management and employees expect wages, while the surrounding community and the environment expected ethical operations of the business. A good business should strike a balance between the needs of all these stakeholders.