Morality and Economic Crisis: Enron, Subprime & Co - Article Example

Ethics are moral guidelines that direct and define an individual. Ethical hazard can be described as a circumstance where the actions that are of best interest to one party are detrimental to the operations of another after a transaction (Conrad, 2010). This study aptly explores the ethical perils that make questionable judgment probable.

Summary

This essay is a fervent piece that shows the creativity of the author. Though, the article does not reveal a noteworthy aspect of the writer’s persona. It portrays a detailed description that shows the body’s relevance to the title. I agree with the author’s statement that the conjunction of motive, means, and opportunity creates an ethical hazard (Pendse, 2012). This approach is complemented by the definition of fitness hazard as a tendency of an entity to take undue menace whose costs are not borne on them (William, 2007).

I deem the author is aiming at providing rules and procedures that will help curb ethical hazards. This is seen in the light of providing an ethical hazard marshal to minimize these tribulations (Pendse, 2012). An instance is given of the leading company, Enron. The management styles and executive decisions of the executives of the company led to an enormous financial crisis. (William, 2007). Therefore, the executives were convicted and received extensive penitentiary terms.

Although I liked the way the writer proposed the initiative of teaching ethics in business schools to curb future occurrences, I think the proposal would be essential in schools of all disciplines and not only business schools (Pendse, 2012). This is because, ethical deeds are a must for the growth of any being in their job place, in households, and in their day-to-day actions.

In my view, I think the author is wrong in assuming that other past scandals were restricted in the corporations they occurred in since for every ethical hazard that happens other institutions and individuals suffer from it(Pendse, 2012). The difference is in the magnitude, for example, in the article, the scandal at Enron destroyed, not just the company, but the rest of the world, as well (Conrad, 2010). This does not inevitably mean that other scandals that seem restrictive do not spread their downfall.

In stating that the fiscal crisis at Enron was totally “unforeseeable and unpredictable”, I feel that the author is contradicting himself. This is seen in the subsequent line where he states that Warren Buffet had previously warned of the looming danger. The danger was, as a result of the increased leverage and growing market derivatives would cause.

In my judgment, I feel the author is trying to elicit empathy from the readers by posting rhetorical questions. He wants the mass readers to consider their stand against the verdict of the executives since it could have been a pure business deal gone erroneous (Ulmer, Sellnow, & Seeger, 2010).