Nobody downloaded yet

Business Ethics Case Study - Research Paper Example

Comments (0) Cite this document
Summary
Business Ethics (Name) (University) Business Ethics: Enron the Smartest Guys in the Room: Ken Lay Introduction Kenneth Lay was found guilty of conspiracy, lying to shareholders and engaging in securities plus wire fraud. Federal prosecutors accused him of overseeing the manipulation of the company books and earnings, so as to conceal Enron worsening balance sheet from public scrutiny…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER93.2% of users find it useful
Business Ethics Case Study
Read TextPreview

Extract of sample "Business Ethics Case Study"

Download file to see previous pages He had aided the false representation of Enron inflated profits and pressed for dubious accounting practices plus fraud, with the intention of enriching himself and other executives. However, in spite of foreseeing the coming demise of Enron, Kenneth Lay lied to the public, the corporation investors and Enron workers to buy the company stocks, even as he and other senior executives were cashing in on the shares and bailing out. Some of the stakeholders affected by Lay actions include the company shareholders most of whom were pensioners who had invested their life savings in stocks that eventually amounted to almost nothing as they lost their personal investments plus pensions. Secondly, his actions had a lasting impact on most of Enron former employees, who not only lost their source of income and livelihood, but also lost their savings in terms of personal pension fund and stocks Discussion Shareholders Through a consequentialism approach Lay should have mentally examined the consequences of his decision to allow false representation of the company financial position and other actions, since he owed the shareholders the duty to provide them with better and accurate information. He owed them the trust to make sure that the company is operated with their benefits in mind, and that it seeks to bring value to their investment. The shareholders needed intelligible disclosures which could be understood by even a lay person without the use of any specialized expert, or possession of an advanced degree as it is the duty of the chairman to make sure that they get such kind of information (Brenkert & Beauchamp, 2010). A consequentialist approach would have enable Lay to make significant ethical decision that would not have seen the shareholders value crumple. Notably, he owed them the duty to come up with adequately-designed controls measures, and provision of attentive oversight that would have stopped some of his employees from pushing the limits of their investments. Lay should instead have provided the shareholders with information that could help them to maximize their payback and at the same time minimize harms. He had the duty to net balance good outcomes over the bad consequences for the shareholders. If he had shared earlier what he knew, then the shareholders could have come up with decisions which possibly could have saved Enron, even if those decisions could have tuned out to be detrimental to his position in the company. Perhaps he may have lost his job and trust of the shareholders, but telling the shareholders the truth about the status of Enron could have helped them to seek solutions that would have at least save part of their investments (Brooks & Dunn, 2009). Based on non-consequentialism theory, Ken Lay had a fiduciary obligation to progress Enron shareholders interests exclusively. Lay obligation to shareholders was to avoid and avert harming their investment in the company by observing pertinent laws of the company and regulatory standards. As a leader entrusted by the shareholders to oversee the operations of Enron, he had the obligation of adding value to the corporation and contributing to the ethical success of Enron. Instead, Lay negated on his priority of re-establishing investor confidence (Mulgan, ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Business Ethics Case Study Research Paper Example | Topics and Well Written Essays - 1000 words”, n.d.)
Business Ethics Case Study Research Paper Example | Topics and Well Written Essays - 1000 words. Retrieved from https://studentshare.org/business/1448537-business-ethics-case-study
(Business Ethics Case Study Research Paper Example | Topics and Well Written Essays - 1000 Words)
Business Ethics Case Study Research Paper Example | Topics and Well Written Essays - 1000 Words. https://studentshare.org/business/1448537-business-ethics-case-study.
“Business Ethics Case Study Research Paper Example | Topics and Well Written Essays - 1000 Words”, n.d. https://studentshare.org/business/1448537-business-ethics-case-study.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Business Ethics Case Study

Business Ethics

...? TEACHER 17 May Business Ethics Case Study This was an interesting case study where business and legalethics are to be considered. The issue in all four of these questions lies in the notion of whether an individual should receive preference over the masses, or should the interests of the masses be considered first. As with most ethical decisions, there is likely no one solid answer, but I have done my best below to provide some possible courses of action that the judge in this case could consider. Question 1 In this situation, Mr. Groetsch has done nothing wrong. As such, he is under no obligation to allow other people to handle his personal fight against Securities America. He is convinced that he has been financially damaged... as a...
5 Pages(1250 words)Case Study

Business Ethics: Merck

...? Business Ethics Case Analysis: Merck BY YOU YOUR SCHOOL INFO HERE HERE Business Ethics Case Analysis: Merck Introduction and Situational Analysis Merck & Company is being accused, under relative ethical beliefs and values, of putting profit before the health and human safety of global citizens. Merck was attempting to put more financial and labor resources into developing new drugs since the business was about to lose patent protections for two highly-profitable drugs that provided Merck with billions of dollars in profitability. Merck began to investigate the prevalence of the disease onchocerciasis, known as river blindness. This disease injects parasitic worms that are carried by black flies in Latin America, the Middle East... and...
8 Pages(2000 words)Case Study

Business Ethics

...? Topic: Business Ethics Introduction Business ethics are some of the important factors to consider when establishinga business. Business ethics can also be referred to as corporate ethics. Corporate ethics are types of applied ethics that observe ethical principles as well as moral setbacks that are found in a business environment. Union Carbide: Assault on the Ohio Valley The valley is located between West Virginia and Ohio. It is found in an industrialized location and is surrounded by the chemical and metal plants. The valley...
5 Pages(1250 words)Case Study

Business Ethics

...Business ethics Introduction In philosophy, there are three braches of ethics one of them being applied ethics. It is under applied ethics where business ethics is classified. Business ethics evaluate the ethical principles that are relevant in the business world. Ethics refers to the moral guidelines that define what is good or what is bad. In business, there some conducts that may be regarded as unacceptable due to their moral implications and reputation in the society. The guidelines or the principles that define such...
5 Pages(1250 words)Case Study

Business Ethics

...transportation" (Span), this is actually not entirely the case. GM was simply doing what it thought would best help its business, and it did what it felt it had to do, even if it was illegal. This scandal however, did help root out the electric bus system, and pave the way for the automobile industry as we now see it today. Secondly, the new buses also set up new, better forms of transportation for people to use. The "the reception was generally favorable"(Span), and most people liked the new bus system over the old one. Were the practices that got them there corrupt Of course, but all the people in the cities saw were new cleaner, more efficient modes of transportation. The third consequence of the scandal was the...
1 Pages(250 words)Case Study

Business Ethics Case Study

...Business Ethics Case Study Business Ethics Case Study Introduction For any company involved in the production of foods, particularly organic foods, experiencing claims of food poisoning as a result of consuming their products is one of the more feared scenarios. For Nutrition Foods Inc., this nightmare has become a reality after more than five people complained about experiencing mild to severe instances of food poisoning after consuming food from its outlets. The corporation, which was just beginning to benefit from its cleanly image, now has to consider the possibilities that may harm its reputation. The organization’s ethical dilemma has to do with...
3 Pages(750 words)Case Study

Business Ethics - Disussion Questions

...Business Ethics - Discussion Questions The Role of Making Decisions in Starting Business in Foreign Countries As a corporate decision maker, I will have a mandate and responsibility to integrate the social, environmental and economic structures into the decisions-making process in developing the business. I will carefully use innovative ways in finding creative, value added solutions to the environmental challenges, and deploy approaches that would favor the business to be started in this foreign country. As the overall maker of decisions in the business, I will establish values that will create harmony between the business and the community (De, 2012). Proper work ethics will be formulated with an emphasis on loyalty and respect... through...
2 Pages(500 words)Case Study

Business Ethics Case Study

...The Beech-Nut Case al Affiliation: The Beech-Nut Case The beach-nut case describes the ethics of different people inthe organization and how their decisions contributed to the crisis in the case. Each party involved made decisions that were influenced by their communication strategies. All the parties influenced the CEO to make a final decision in different ways. Parties involved Peter Anderson was the newly appointed CEO of the Beech nut corporation. He was supposed to revive the profitability of the company by supplying healthy products that would meet the standards set by Nestle. He was supposed to determine whether Beech nut would join PAI in filing a case against Universal Juice Company (Burke 1988). He was also...
2 Pages(500 words)Case Study

Business Ethics

... Human resource issue In this case, an ethical dilemma that arises is limited access to sensitive informationthat will lead to a smooth running of the committee, examine the suggestions and create the approach on how to effectively reward good employee idea. The first cause of action that I will take is to compel the chairperson to disclose the proceedings of the previous meetings that were held without my knowledge. The advantage of disclosing such information is for transparency so that everyone in the committee is aware of the necessary steps that are being taken in the decision process. Additionally, it is one of the protocols of corporate principles and, therefore, failure to do so will lead to an unsound decision... emergency milk...
2 Pages(500 words)Case Study

Business Ethics

...Business Ethics: Case of Arthur Andersen Arthur Andersen and Clarence Delaney were the co-founders of Arthur Andersen (Fernando 242). The audit firm was founded in 1913 in Chicago. Originally, it was known as Andersen, Delaney & Co. Arthur Anderson was offering accounting services to many companies. In 1918, Andersen, Delaney & Co changed its name to Arthur Andersen and over the next 89 years the firm gained reputation and joined other top accounting firms in the United States. By 1990, Arthur Andersen had “1800 partners and 85,000 employees in over 84 countries” (Fernando 242). During this period, Arthur Andersen was competing with top audit firms such as PricewaterhouseCoopers. Arthur Andersons’...
5 Pages(1250 words)Case Study
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Research Paper on topic Business Ethics Case Study for FREE!

Contact Us