Ethical practices are a code of conduct that govern how things are done or should be done in a particular place, for example in a business. They can also be described as a system of moral principle that state how people or organizations should act or behave (Brooks & Dunn 2009, p. 23). A business organization is expected to follow certain ethical principles in its operations in order to ensure that they are working efficiently and that all stakeholders are benefiting from its operations. Many businesses have been driven by a need to make extra money, and hence they have become greedy and, therefore, engage in unethical practices just to get the extra money. According to W. Stead, Worrell & J. Stead, “the question of ethics in business conduct has become one of the most challenging issues confronting corporate America in this era” (1990, p. 233). Thesis statement This paper will examine ethical practices that the management of Enron neglected and that led to its collapse. The paper will explore the requirements of these ethical principles and how the management of Enron acted against them which led to its bankruptcy and, finally, collapse. Enron is an example of a business which has been engaged in unethical practices just for the sake of satisfying the interests of a few people in the organization at the expense of others. Enron was one of the largest energy companies in the world, and it has been the most innovative company in America until its bankruptcy (Rapoport & Dharan 2004, p. 124). It has, however, been affected by several unethical and illegal practices such as defrauding its financial statements. The Enron scandal led to a massive loss of jobs and shareholders who lost their capital when the company went bankrupt (Goldman, 2010, p. 75). The management practices at Enron, which led to its fall, did not adhere to the ethical principles of the global business standards codex. There were also concerns about “pervasiveness of unethical practices and about the systemic nature of practices which distorted the market” (McBarnet 2006, p. 1093). These ethical principles usually govern the way businesses and organizations should operate or carry how managers and employees should carry out their duties. One of the principles of the global business standard codex is the transparency principle. This principle states that everyone in an organization should be transparent and truthful in whatever they do (Morland 2011, p. 121). This means that managers should provide clear and true financial statements regarding the company, and also provide true records and reports on all the activities of the business. The managers at Enron did not adhere to this ethical principle. Enron, with the help of its accounting firm Arthur Anderson, constantly defrauded its financial statements and issued the ones that were not true and were not clear (Goldman 2010, p. 98). This shows that they were not transparent and truthful. Its accounting practices were also not clear, for example, they included costs of ghost projects that had been cancelled and were not in their financial statements in reality, and this is why, they could retain the money to the cancelled project. They, however, argued that they included the costs because there was no official letter stating that projects were cancelled (Sims, 2003, p. 156). Individuals and inves