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Identify any ethical issues involved in the enron case
Identify any ethical issues involved in the enron case
Identify any ethical issues involved in the enron case
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Dr. Wayne Grudem is a New Testament scholar turned theologian, author, and Research Professor of Bible and Theology at Phoenix Seminary, Arizona ("Wayne Grudem," ). In lieu of many of his great accomplishes, Dr. Grudem has also written numerous books and articles. Among those books, he is the author of Systematic Theology: An Introduction to Biblical Doctrine, which advocates a Calvinistic soteriology, the verbal plenary inspiration and inerrancy of the Bible, the body-soul dichotomy in the nature of man, and the complementarian view of gender equality ("Wayne Grudem," ). In 2003, Dr. Grudem released a book titled “Business for the Glory of God: The Bible's Teaching on the Moral Goodness of Business”. Within this work, Dr. Grudem tackles intricate and arguable matters, in which he unravels what the Bible teaches regarding the moral goodness of business.
Applying the idea of moral goodness with business, however, is often a contradictory concept in lieu of the malicious and often scandalous behavior that businesses are notoriously publicized with. Enron, an energy company based out of Houston, Texas, is perhaps the most popular of scandals of the century thus far. Their name is synonymous with corporate fraud and corruption after the allegations of accounting fraud hit the headlines in 2001. The scandal was also considered a landmark case in the field of business fraud and brought into question the accounting practices of many corporations throughout the US (Raslan, 2009). Under this shroud of deceptive business practices and activities, applying the idea of moral goodness with business is a difficult sell to readers.
Nevertheless, in the Business for the Glory of God: The Bible's Teaching on the Moral Goodness of Business, Dr. ...
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...rguments towards deceptive business practices and activities, any admirable argument to go against any of Grudem’s nine concepts is difficult-to-nearly impossible. In fact, I agreed with all the concepts, and found the concepts of ownership, money, and profit to be the most convincing and most intriguing.
Dr. Grudem (2003) concludes his book with a compelling and ardent reflection on the impact of business in relation to world poverty:
"I believe the only long-term solution to world poverty is business. That is because businesses produce goods, and businesses produce jobs. And businesses continue producing goods year after year, and continue providing jobs and paying wages year after year. Therefore if we are ever going to see long-term solutions to world poverty, I believe it will come through starting and maintaining productive, profitable businesses" (p. 81)
Many organizations have been destroyed or heavily damaged financially and took a hit in terms of reputation, for example, Enron. The word Ethics is derived from a Greek word called Ethos, meaning “The character or values particular to a specific person, people, culture or movement” (The American Heritage Dictionary, 2007, p. 295). Ethics has always played and will continue to play a huge role within the corporate world. Ethics is one of the important topics that are debated at lengths without reaching a conclusion, since there isn’t a right or wrong answer. It’s basically depends on how each individual perceives a particular situation. Over the past few years we have seen very poor unethical business practices by companies like Enron, which has affected many stakeholders. Poor unethical practices affect the society in many ways; employees lose their job, investors lose their money, and the country’s economy gets affected. This leads to people start losing confidence in the economy and the organizations that are being run by the so-called “educated” top executives that had one goal in their minds, personal gain. When Enron entered the scene in the mid-1980s, it was little more than a stodgy energy distribution system. Ten years later, it was a multi-billion dollar corporation, considered the poster child of the “new economy” for its willingness to use technology and the Internet in managing energy. Fifteen years later, the company is filing for bankruptcy on the heels of a massive financial collapse, likely the largest in corporate America’s history. As this paper is being written, the scope of Enron collapse is still being researched, poked and prodded. It will take years to determine what, exactly; the impact of the demise of this energy giant will be both on the industry and the
Dr. Gregory Boyd is a professor of theology at Bethel College. He attended such universities as the University of Minnesota, Yale Divinity School, and Princeton Theological Seminary. As well as being a professor he is a preaching pastor at Woodland Hills Church in St. Paul, Minnesota, and has authored three books and several articles. This particular book is a dialogue between he and his father, Edward Boyd. Edward lives in Florida and worked for 35 years in sales management. He has six kids, 15 grandchildren, and nine great-grandchildren.
The movie “Glengarry Glen Ross” presented a series of ethical dilemmas that surround a group of salesmen working for a real estate company. The value of business ethics was clearly undermined and ignored in the movie as the salesmen find alternatives to keep their jobs. The movie is very effective in illustrating how unethical business practices can easily exist in the business world. Most of the time, unethical business practices remain strong in the business world because of the culture that exists within companies. In this film, the sudden demands from management forced employees to become irrational and commit unethical business practices. In fear of losing their jobs, employees were pressured to increase sales despite possible ethical ramifications. From the film, it is right to conclude that a business transaction should only be executed after all legal and ethical ramifications have been considered; and also if it will be determined legal and ethical to society.
Poverty is not just an issue reserved for third world countries. Instead, poverty is a multifaceted issue that even the most developed nations must battle
...s extreme poverty that we contribute to, then we are at least partially responsible for its alleviation. As a consequence, we do owe an effective and changing solution. In recognising responsibility we now need to find solutions and do our part to stop the phenomenon of poverty destroying more innocent lives. The question is now whether affluent states do have the ability to make those changes. Pogge, whilst continually advocating minor changes and simple solutions in the two papers, does not actually suggest the mechanisms of any. As a consequence, more thought needs to be given to the possible solutions that can alleviate global poverty and eliminate our debt to the poor. This however, does not justify continued imposition of the problem. Just like if a builder is incapable of fixing leak he would hire help, so too must society look to find an adequate solution.
Ethical behavior, in a general sense, is a definition of moral behavior in regards to lawfulness, societal standards, and things of that nature. In the business world, ethics commonly refer to acceptable and unacceptable business practices within the workplace, and all other related environments. The acceptance of colleges regardless of ethnicity, gender, and beliefs, as well as truthfulness and honesty in relation to finances within the company are examples of ideal ethical business conducts. Unethical business behavior would include manipulating procedures based on bias or discrimination, engaging in activities that promote political gain, as well as blatant fabrication of monetary factors within the company and “can affect organizational performance and is costly to employers, employees, shareholders, and other organizational stakeholders” (Cox 263). When a corporation practices proper ethics, it is representing not only itself in a positive manner, but its partners, shareholders, and clients as well. On the other hand, when an organization partakes in unethical activities, all parties are negatively affected. The collapse of Enron is a major case of unethical conduct in the corporate world, because the circumstances surrounding the firm’s chaotic plunge where so scandalous that it left “creditors wrangling over Enron's skeletal remains” (Helyar) long after the company had seen its demise. There are numerous instances to be mentioned, including deliberate failure to properly report fiscal losses, insider trading, and overall relentlessness. The inclusive purpose of this paper is to further explore the underlining factors that contributed to the downfall of the once powerful Enron, and how a new way of approaching business ethi...
Pogge, Thomas Winfried Menko, and Keith Horton. "Famine, Affluence and Poverty." In Global ethics: seminal essays. St. Paul, MN: Paragon House, 2008. 1-14.
Peter Singer is an Australian philosopher whose solution to world poverty is overwhelmingly known globally. He has an excellent idea that is keenly and carefully looked into by many across the world. Peter clearly understands that the world poverty solution can only be addressed and solved if individuals from rich countries are willing and are in a position to offer their luxurious wealth to the needy. He, however, asserts that it is not necessary to spend money on assets like television, cars, movies, expensive meals, and brand new clothes as well (singer, 223).
In this way, the guidelines for the calling can perpetuate the idea that the exploitation of other peoples is still approved by god. In chapter 5 of his book Weber describes the calling, “favour in the sight of God, is measured primarily in moral terms… But a further, and above all, in practice the most important criterion is found in private profitableness" (2003: 162). The individual is able to decide what defines the “moral terms” as long as there is profitability within the work they do. Again Weber explains that private profit is the most important component of the calling: “Christians must follow the call by taking advantage of the opportunity. 'If God shows you a way in which you may [without wrong to your soul or to any other] '” (2003;
More than $3billion people in the world which is nearly half of the world’s population are living on less than $2.50 a day and more than $1.3 billion live in extreme poverty which is less than$1.25 a day. (Unicef 2013). One third of deaths a year are cause by poverty. An estimate of 600 million children live in absolute poverty, every year more than 10 million innocent children die of hunger and PREVENTABLE diseases, such as diaorreah, pneumonia and malaria 19 million kids worldwide remain unvaccinated, even a simple net would prevent malaria. During 2011, 165 million kids under the age of 5 were stunted( reduced rate of growth and development) due to chronic malnutrition 870 million people worldwide do not have enough to eat. More than half a million women die in pregnancy and child birth every year… one death a minute. Why do we have cases of poverty in 2014? “Overcoming poverty is not a task of charity, it’s an act of justice. Like slavery and apartheid, poverty is not natural. It is man made an it can be overcome and eradicated by the actions of human beings”. Mandela (2005). It’s heart breaking that in this day and age there are children dying of hunger, and easily preventable diseases. Poverty reduction is one of the most dominant themes in current scholarship, policy formation and international discussion on economic development. A sign of it importance is shown by the fact that the very first target of the millennium development goals (MDG) is in fact to reduce the people living under $1 a day by half by 2015. Relative to this dissertation the role of economic growth in in poverty reduction is of high importance. Substantial and lasting reductions, if not complete eradication of poverty has been and will continue to b...
The term “ethical business” is seen, by many people, as an oxymoron. This is because a business’s main objective is to make as much money as possible. Making the most money possible, however, can often lead to unethical actions. Companies like Enron, WorldCom, and Satyam have been the posterchildren for how corporations’ greed lead to unethical practices. In recent times however, companies have been accused of being unethical based on, not how they manage their finances, but on how they treat the society that they operate in. People have started to realize that the damage companies have been doing to the world around them is more impactful and far worse than any financial fraud that these companies might be engaging in. Events like the BP oil
Global poverty is often defined in absolute terms of low income nearly half of the world's population-more than 3 billion people- live on less than $2.50 a day, for example. In this article Mr. Gates elaborated on his inpatients with the shortcomings of capitalism, advocating for a revision of what most consider the free will of capitalism. Planning to call for a "creative capitalism" that uses market forces to address the poorer-countries needs that are being ignored. Mr. Gates stated in the article that he has personally seen the shortcomings of capitalism, on trips for Microsoft
The 2008 documentary The End of Poverty? is a film that focuses around global poverty and how it became the tragedy that it is today. Poverty was created by acts of military conquest, slavery and colonization that led to the confiscation of individual’s property and forced labor. However, today the problem remains because wealthy countries who take advantage of developing third world countries. The film interviews several activists who discuss how the issues became and several ways in which they could be eliminated, as well as interviews from individuals who are experiencing it firsthand.
The fact that the number of people who live in poverty around the world has been decreasing since the 1990s is made even more remarkable by the fact that the United States is experiencing increasing poverty levels, according to the U.S. Bureau of Labor Statistics. In 2007 through 2009, the poverty status of persons in the labor force for 27 weeks or more increased each year; in 2007 the number was 146,567 and in 2008 was 147,838 whereas in 2009 it was 147, 902. If the situation of poverty in America, the world’s most advanced economic nation in terms of development, is rising, the situation in third-world countries must be even more dire. According to Macroeconomics by Andre B. Abel, there are 6.4 billion people in the world
Global poverty is a problem with deep roots. The problem lies behind simple financial status, it extends across many dimensions. Each of the theories provide a different perspective on the issue of poverty.