Business, law, and ethics Essay Example | Topics and Well Written Essays - 500 words - 1

Business, law, and ethics - Essay ExampleFor instance, they allow the company adopt the sell recommendation which is detrimental to the investors. Instead of playing their watchdog role, the gatekeepers failed to perform this situation which led to the collapse of the company.The gatekeepers also failed to detect securities deceit as it took place at Enron. This contributed to the collapse of the company. The euphory in the market made the gatekeepers less relevant thereby overlooking their work. This compromised their credibility since it resulted in the tumble of the company. Regardless of the market conditions prevailing at an given moment, it is imperative for the gatekeepers to make sure that they perform their anticipate duties so as to safeguard the investors money. Failure to adhere to their stated goals may result in fraud activities being committed by the directors of the organization concerned. This is what happened at Enron since the directors engaged in unethical pr actices that resulted in the autumn of the company.There is also need for the gatekeepers to preserve their reputational capital so as to batten that their clients are run within the expect framework. However, in this type, it can be seen that the gatekeepers reputational capital slackened and this resulted in them failing to perform their expected duties. This compromised the performance of the company and it contributed to its downfall. Once the gatekeepers have been reluctant in their operations, they may not be commensurate to detect problems that may impact negatively on the operations of the company. the monitoring function of the gatekeeper is meant to ensure that things such as fraud are not committed by the company executives in their operations.The case of Enron also shows that the gatekeepers did not perform their obligations to monitor the operations of Enron. In order to prevent such a situation from happening again in the future, it is imperative for the gatekeepe rs to