Enron Ethics (Culture Matters More than Codes)

Running head: ENRON ETHICS
Enron Ethics
Name of the Student
Name of the University
Author’s Note

ENRON ETHICS1
Executive Summary
There are so many such cases, which emphasize the significance of the ethical conduct at work
place. Enron is the case study in the ethics and the story of the America’s biggest fraud. The aim
of this report is to identify the potential illegal or unethical moral behavior that should be applied
while confronting with the ethical dilemmas. In this report, the theories of Egoism and
Deontology, AAA model and the model of Ferrell, Fraedrich and Ferrell are applied for the
ethical decision making process. By this study of the Enron, this can be concluded that, the cards
of the Enron’s house had collapsed as the result of the process of the interacting decision, this
culture eroded at Enron slowly by trespassing of the ethical boundaries and by allowing the most
questionable behavior for slipping by the cracks.

ENRON ETHICS2
Table of Contents
Introduction......................................................................................................................................3
Part A: Ethical Theories of Egoism and Deontology......................................................................3
Part B: Use of AAA Model.............................................................................................................4
Part C: Apply Ferrell, Fraedrich, and Ferrell model........................................................................8
Conclusion.....................................................................................................................................10
References......................................................................................................................................11

ENRON ETHICS3
Introduction
In United States, the 2002 Sarbanes-Oxley Act was passed for multiple vital scandals of
corporate accounting, which occurred in the year 2000-2002 that includes the fraud and
corruption at Enron on the colossal scale (Kumar & Aldous, 2015). There are so many such
cases, which emphasize the significance of the ethical conduct at work place. Enron is the case
study in the ethics and the story of the America’s biggest fraud. The purpose of this report is to
identify the potential illegal or unethical moral behavior that should be applied while confronting
with the ethical dilemmas. In this report, the theories of Egoism and Deontology, AAA model
and the model of Ferrell, Fraedrich and Ferrell are applied for the ethical decision making
process.
Part A: Ethical Theories of Egoism and Deontology
The ethical egoism is a theory, which the advancement of the good as per the morality of
the organization. In this potential version, this is organized that this will be moral for promoting
the good and this is moral for not promoting it (Caliskan, Akbas & Esen, 2014). In the imaginary
construction of the Enron corporation by the single aspect, this is possible in pursuing the
morality, which is similar to the pursuit of the self-interest for the agent. There can not been arise
the occasion while the agent should not pursuing the self-interest in the approval of the other
ethics until the agent produces the other moral process in which, the needs in renouncing of the
values and norms in the imaginary self-favor and the other entities in Enron. The opponents of
the ethical egoism can claim though this is not possible for lamenting the past preferences as not
the helpful for self-interest such as loving the swimming happiness and not spending the vital
time to produce food and the mistakes are not the moral mistakes however the mistake of