Government should have supported Enron, a large energy corporation, because the company advocated strict global regulations and followed the environmental principle of energy distribution (Carney, 2006). In addition, Enron have significant influence on the government in Washington, which is the second reason why the government should have supported this company. In particular, by providing financial support, the authorities could have taken greater control of bureaucracy and bribes.
At the same time, excess support of such large company as Enron could have hampered significantly the development of smaller businesses. In this respect, funding of Enron would have led to a shifted balance of small and big businesses. Another reason to withdraw funds allocation among big businesses lies in a possibility to support environmental and ecological reform because Enron would have had a direct impact on the polluted environment.
Enron actively engaged political leaders into their business activities to monitor the economic situation in the country (Milbank & Kessler, 2002). In particular, close relationships political leaders – Bush and Lindsey – and Enron company can be considered the brightest example of the company’s political influence on the government.
The case presented above discourages authorities to support big companies because they can also have a negative influence on a democratic system in the United States. Specifically, having influential people to support corporate activities provides a seed of misunderstanding between the US people and the government since the former strongly believes in transparency and equality in making political decisions.
However, in case political power had supported big company’s initiate to advance economy, such as the example of supporting the Kyoto protocol for climate change, Enron would have had a good impact on the US development.
The benefit of a free enterprise business lies in providing private owners with freedom of choices (Meyer, 1997). Free corporate systems and business groups often pursue their own interest rather than focus on global development. Therefore, they can significantly hamper the global integration of company into the globalization process.
Shifts in production process and business management can lead to decreased control of the government of the trade market and, therefore, an enterprise system develops apart from the overall economic context in the United States. Moreover, it can significantly change the course of orientation and create an independent system of production.
Kimptom Hotels’ Network received a number of economic benefits while implementing EarthCare Program. In particular, it succeeded in selling organic products and furnishing their hotel rooms with environmentally free items. Second, it has gained recognition on a global level and satisfied global requirements. Third, the company developed environmental partnerships with other related companies and programs.
With regard to the above-presented case, the introduction of a global corporate citizenship provides an overview of new roles that free enterprise systems can perform at the international level. Therefore, encouraging global corporate citizenship development is appropriate because it contributes to enhancing ethical responsibilities and adhering to quality standards of production and service delivery.
It also provides a solid platform for sustaining societal morale, ethics, and values by advancing such fields as political philosophy, international relations, and management studies (Anderson, 2010). Finally, it enables the companies to share experience with each other for creating of an advanced global community.
Anderson, R. (2010). Global Corporate Citizenship – A Trend to Watch. The Conglomerate. Retrieved from http://www.theconglomerate.org/2010/01/global-corporate-citizenship-a-trend-to-watch.html
Carney, T. P. (2006). Big Business and Big Government. Retrieved from http://www.cato.org/research/articles/cpr28n4-1.html
Meyer, M. (1997). Understanding Cooperatives: The American System of Business. Cooperative Information Report, 45(1), 1-4. Retrieved from http://www.rurdev.usda.gov/rbs/pub/cir451.pdf
Milbank, D., & Kessler, G. (2002). Enron’s Influence Reached Deep into Administration. The Washington Post. Retrieved from: http://www.commondreams.org/headlines.shtml?/headlines02/0118-01.htm