Ethics and Governance | Enron Corporation Study

Running head: ETHICS AND GOVERNANCE
Ethics and governance
Name of the Student
Name of the University
Author Note

ETHICS AND GOVERNANCE
Executive summary:
The paper has conducted an assessment and examination of the mechanism of corporate
governance of Enron Corporation. Such assessment has been done by the application of some
ethical theories and model for guiding the ethical decision making process. The corporate
culture and the governance structure has been evaluated by the application of two models that
is Ferrell, Fraedrich, and Ferrell model and AAA model of ethical decision making. In
addition to this, paper also elucidates the ethical issues of Enron using the theories of
Deontology and Egoism.

ETHICS AND GOVERNANCE
Table of Contents
Introduction:...............................................................................................................................4
Discussion:.................................................................................................................................4
Answer to part A:.......................................................................................................................4
Contrasting the application of ethical theories of deontology and egoism to Enron case:........4
Answer to part B:.......................................................................................................................6
Evaluating the ethical decision making process of Enron using AAA model:..........................6
Answer to part C:.......................................................................................................................9
Evaluating the application of ethical model of Ferrell, Fraedrich, and Ferrell to Enron case:. .9
Conclusion:..............................................................................................................................11

ETHICS AND GOVERNANCE
Introduction:
The study conducted research on the case of Enron with the objective of applying
various ethical theories for the identification of unethical moral behavior and guidance to the
accountants to solve the issues when faced with ethical dilemma. Discussion incorporates the
evaluation of ethical theories Deontology and Egoism and the application to the case of
Enron. The ethical and responsible decision making by the accountants has been obtained by
the application of AAA model. The later section of report also conducts an analysis of the
Enron case by applying the model of ethical decision making of Ferrell, Fraedrich, and
Ferrell. The paper is grounded using some review on literature of the ethical theories where
the arguments is extended and make suggestion to the organization.
Discussion:
Answer to part A:
Contrasting the application of ethical theories of deontology and egoism to Enron case:
The choices and decisions made by these leaders are influenced by their ethics and
morals. In America, ethical leadership in corporate is as important as ethical leadership in
political world. The ethics followed by the leaders of the company makes the company a
good or a bad company.
Normative theory talks about how an individual should or ought to behave. It has two
sub theories namely teleology and deontology. Teleology focuses on the consequences and
outcomes of an individual’s action. Whereas deontology is based on the intentions of an
individual. Ethical egoism is a part of teleological theory in a normative behavior. Ethical