Questions: A purely compliance-based approach to preventing the fall of Enron would likely have failed because: a. Governments and businesses have no way to enforce compliance with legal standards b. Compliance-oriented corporate cultures never work c. Company leaders needed values-based ethical decision making, not more rules and laws In their pursuit of gain. Enron's leaders disregarded fairness. transparency, the golden rule, and the interests of lower-level employees. This lapse would be best remedied by: a. A values-based ethics culture

The answer is c. Company leaders needed values-based ethical decision making, not more rules and laws.

This option is incorrect because governments and businesses do have mechanisms to enforce compliance with legal standards. Regulatory bodies, internal audits, and compliance departments are examples of how legal standards are enforced. However, these mechanisms alone are not always sufficient to prevent unethical behavior, as seen in the case of Enron.

This option is also incorrect. While compliance-oriented cultures can sometimes be insufficient on their own, they do play a crucial role in ensuring that companies adhere to laws and regulations. The failure of Enron was not solely due to a compliance-oriented culture but rather a lack of ethical decision-making at the leadership level.

This option is correct. The downfall of Enron was largely due to unethical behavior and a lack of integrity among its leaders. A values-based ethics culture emphasizes the importance of ethical decision-making and integrity, which could have helped prevent the unethical practices that led to Enron's collapse. This approach focuses on instilling core values and ethical principles within the organization, encouraging leaders and employees to act with integrity and fairness.

In summary, while compliance with laws and regulations is important, it is not sufficient on its own. A values-based ethical culture is essential for fostering an environment where ethical decision-making is prioritized, which could have helped prevent the fall of Enron.