The Six Virtues Of Virtue Ethics Case Study: Enron

Narcissists might become leaders after they help to remove the company’s uncertainty, but their qualities would totally become useless once the uncertainty is gone. Moreover, their interest of taking high risk would hurt the company in the long term. Risking is like a gamble that could be win or lose. Therefore, if the narcissists lose the gamble, the company would in a big trouble, and even bankrupt. In the article “Narcissistic Leaders”, Michael Maccoby wrote an example about narcissistic leader.

Soon, trusts became a new form limiting competition. Trust was created to decrease competition and increase prices. The company will have control of the stocks of several companies and make decisions for them. When a company owns all or almost all of the companies, it becomes a monopoly. A monopoly had many negative effects on consumers and the workers.

Over $56 billion dollars was made from World War II and most companies used unethical business practices to get that money. Businesses did not care that America was in the biggest war yet or that America needed supplies to win the war. Businesses still charged the government normal prices and even raised prices in some cases to raise their profits. ?The 200 largest steel corporations more than doubled their annual profits during the war? (Thorne 190).

Edward’s leaks did not contain any U.S. secret plans, identities of agents or secret algorithms. [6] Also, Edward Snowden did not simply release all the information he could, he studied each document. [6] Edward Snowden purposefully released only documents proving that the U.S. was spying on its people without telling them. Edward Snowden remarked “The only thing I fear is the harmful effects on my family, who I won’t be able to help anymore”. [7] That makes it seem as though leaking this information was so important it took precedence over his family.

In addition, if they cannot find supply of goods, and their products have to provide to their customers, they will face reputation risk too. The worst case is that it will break their relationship of cooperation, and it will be a vicious circle. To the customers who have larger orders, they have to pay money for these products earlier, which means they require to prepare money for them and no plan for these products’ purpose. As a result, these products will probably be put in the warehouse until the time of using them (2) If Tucker and his team do not make this decision, it will affect themselves and their shareholders, because they cannot get the target this

He was only concerned about his own pockets and did not bother about the profitability of the company. If the two-tier system was not adopted in the company, he wouldn’t have had controlling power. Effective governance structure is essential in protecting corporations such as Hollinger from Chairman and CEOs who are involved in unethical behavior due to their positions in the company and also in order to protect the minority

This theory creates controversy in business ethics in case of this corporation’s obligations to society. It could be said that Exxon was following their own self-interest by stopping more spilling but they had no obligation to repay people in society. Only an obligation to let shareholders know how this oil spill would affect profits. It was a good strategy to let people who depended on the water know about the spill but they had no obligation to pay environmental groups or any other groups that filed a complaint. Just as long as they took responsibility for letting it happen and breaking a few laws.

At this stage, the company reached its peak with 28,000 people employed in the US and more than 85,000 people employed worldwide, with revenues soaring up to around $9.3 billion. It was during this time, in 1986, that the company engaged Enron as one of its clients providing both internal and external auditing services, in addition to consulting services. Few would have guessed that the 16-year relationship between Enron and Arthur Andersen would have lead to the failure of both companies, dwindling the company from an established audit firm to a simple limited liability company (Edelman & Nicholson, 2008). In the past, Arthur Andersen was already involved in some suspicious activities since it was linked to the Mafia of Chicago and the CIA, it was part of an underground espionage operation in Greece, and covered up a huge misappropriation of the First National Bank in Chicago in the 1970s. However, the biggest misconduct of them all surely related to the Enron case where it hid millions of dollars of debt of the energy firm from the

Insider trading is when one person has access to information that’s unavailable to the public and will likely have an impact on stock prices. For example, employees might know that their company is going bankrupt before the general public and sell all their stock before it becomes worthless. People who buy the stock will be deceived into thinking its worth more than it really is. In fact, it’s also insider trading for the employees to encourage family and friends to sell their stock using such “inside information.” Insider trading involves difficult moral issues. It’s not clear exactly when employees can buy or sell stock from their own companies; it’s not entirely clear how much information a company should “disclose to stockholders about

Importance of Morals in Business Over the past decade there are many examples of why morals are important in a business. Without morals, businesses lack ethical and legal decision making. Morals help combat many different legal problems that hurt businesses in the long-term. Therefore, by a business embracing a culture of morality it helps them succeed into the future. Morals are an important part of all businesses and how they will perform in the future.