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Business Ethics | Case Study

   

Added on  2020-03-16

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Leadership ManagementLanguages and CulturePhilosophyCalculus and Analysis
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Running head: BUSINESS ETHICS Business ethicsName of the student:Name of the University:Author note:
Business Ethics | Case Study_1

1BUSINESS ETHICS a)Discuss whether Mr Ali’s action of giving bribery morally is right based on the consequentialas well as based on the Non consequential theory and Virtue Ethics (60m)Relatable Case Study (The rise and fall of Enron)The mighty and rich falls at sometimes. Chairperson and CEO of Enron, Ash KennethLay, whose company got crashed. The company was founded in the year 1980, the chairpersonsoon turned into a player of a dominant nature in the arena of trading of energy, which isevolving fast to become the seventh biggest company of America. The real fact is that no one isaware aware about the money making process of the company. In the year 1998, the Enron’sstock value has been enhanced by 40%. The immediate year, faced a boom till 59% and in theyear 2000, it increased to an unbelievable percentage at 90. The Fortune Magazine stated through it vote that Enron is considered to be the most newcompany of the year in the year 2000. The Enron proudly claimed to be not only the company inthe world, which is Energy Company but also, the company is leading the era in its professionalfield. However, when the company has been pressurized to call bankruptcy in the year 2001.December, the world came to know that the leading financial company was nothing but a mereillusory and the success of the business is based on the blocks of hype. The hype retained till theend. With the end of the company’s fast approaching financial stability, Kenneth Lay wasrecommending the stock of the company to its employees that the other executives and also himbailing out by cashing their shares. The crash of Enron costs the accounts on retirement of its employees, more than dollarsin billion as the stock of the company suffered from the stability to only a few pennies which canbe shared. The external investors suffered a loss even more. The reason behind the collapse of
Business Ethics | Case Study_2

2BUSINESS ETHICS Enron caught the investors by the surprise, the market value of the company was $30 billion inthe year 2001, October, just a few moths before the bankruptcy had taken place. It has made thecompany the records of the finance and its accounts as not as clear as possible. The company did this through the creation of the financial structure of the Byzantine ofthe off balanced sheet entities of the special purpose, which are reportedly was supposed to beindependent and separate from the main company. The board of directors condoned them andother practices which are dubious and the twice voted to let the executives to achieve theinterests which are personal than stand contrary to the company. When the company was forcedto rework on its financial statements for the year 1998-2000, its profit fall to $600 million andthe debt of the company increased to $631 million. More worse, when the scandal is about to break, a partner organized at Anderson theincrimination’s shedding, the documents of the Enron before the investigators can lay out theiropinion on them, this resulted to the 89 year old firm based on accounting was convicted whileblocking the justice and it ran out of the business. The year before the Exchange and SecuritiesCommission fining $8 million for approving the accounts, which are misleading at themanagement of Waste and it, had also paid $110 million in order to settle the lawsuit for thework auditing. The fall of Enron also disclosed the conflicts of interest which threatens the wallStreet’s credibility analysts who are compensated, based on the capacity to bring in andrendering support to the deals of investment banking. The company is known for the industry asthe dealing machine as it generates so much of the investment derivatives and loans. This mightexplain the reason, only the days before the bankruptcy is filled by Enron. Just two analysts fromthe World Street who covered the business gave the recommendation that the stock was sold tothem clients.
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3BUSINESS ETHICS Stories related to the corruption of business and of wrong doing and greed in the higherplaces have always attracted the famous press and the interest of media in business mannerswhich were never higher. However, the incorrigible people at the company were turned out to becomplicated, once the primary boundary is being drawn, the illegal works can be easily identifiedsuch as cheating, bribery, disregarding and so forth (William H. Shaw,p.52).1) Consequential theory In the principle of ethics, theories, which are normative in nature proposes some of thebasic principles for differentiating wrong actions and right actions. For the sake ofconvenience, these theories can be further divided into two kinds and they are non-consequential theories and consequential theories. Different philosophers have made arguments that the ethical rightness of anactivity is indicated importantly by its results. If it’s ultimate results are regarded good,the act is considered to be correct. If they are regarded bad, the act considered to bewrong. The theorists who are having moral approaches are called consequentialists.These theorists determine the rights and wrongs through measuring the ratio of theactions which are good and bad. The right acts are considered to be the one, whichmanufactured greater number of goods to the evils in proportion than any other courses ofactions. One important question that has been raised which was based on the case ofMr.Ali is regarded as who would face the consequences. Should the consequences onlybe taken into consideration for one own self? Or the final results would be affectingeveryone? The two important theories by consequentialists are utilitarianism, egoism andthey are differentiated by their different answers of their questions. Egoism advocates self
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