Reflection of Six Ethics Case Studies

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Recommended: Enron Scandal

In this essay I am going to consider the ethical issues that arose in the six case studies I have written, as well as look at theories that can be applied to the situations. The first case study I will be looking at is the Enron accounting scandal. The issues that arose from the scandal include hiding losses off the balance sheets using special purpose entities (SPE’s), executives personally profiting from the company’s loses, and subsequent bankruptcy, as well as a disregarding for fiduciary duties.

The highly competitive aggressive culture at Enron, rewards high performance, and removes those that are considered weak links, by culling the bottom twenty percent of performers. These practices encouraged intense competition between employees from rival firms as well as competition between existing members of staff. “Such behaviour creates a culture where ethics and loyalties are cast aside in quest of profit.”(Fraedrich, J. Ferrell, L. Ferrell, O.C. (2011) Ethical Decision Making in Business a Managerial Approach. 9th Edition: Canada. Nelson Education Ltd page 85).

Considering the culture created by the new performance based model implemented by Jeffery Skilling, it appears to follow a Monist approach that would be in line with a quantitative hedonism. Monists view only one thing as inherently good it is exemplified by hedonism, that being ones pleasure is the ultimate good. Quantitative hedonists believe that you can’t have too much of a good thing; therefore removing the bottom twenty percent of employees to employ better performing individuals, would fit this categorization as potentially it leads to better performance, ergo more profit for the company, and better bonuses all round. This also fits with Teleology meaning th...

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...ion Ltd.

Giddens.A (2009) Sociology 6th edition. UK Cambridge. Polity Press.

Gross, R. (2010) Psychology the Science of the Mind and Behaviour 6th Edition. Dubai. Hodder Education.

Haralambos, M. and Holborn, M. (2008) Sociology Themes and Perspectives 5th edition. 77-78 Fulham Palace Road Hammersmith London. HarperCollins Publishers Limited.

Mullins, L.J. (2010) Management and Organizational Behaviour 9th Edition. UK Essex. Pearson Education Limited.

soe.syr.edu/academic/counseling_and_human_services/modules/Common_Ethical_Issues/theories_of_ethics.aspx [Online] (11/12/2013)

www.education.com/reference/article/kohlbergs-moral-reasoning/ [Online] (8/12/2013)

www.pegasus.cc.ucf.edu/~ncoverst/Kohlberg's%20Stages%20of%20Moral%20Development.htm [Online] (8/12/2013)

www.tarterkrinsky.com/media/pub/tearsheets/tkd_client_alert_031018.pdf [Online] (11/12/2013)

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