ipl-logo

The Six Virtues Of Virtue Ethics Case Study: Enron

773 Words4 Pages

Guan Wang
166000920
Term Paper Outline
I.Case description-Enron
Before bankruptcy
Enron was one of the world 's major electricity, natural gas and pulp and paper company. It started with the pipelines and as the company grows up, it start to expand into many different business areas. The company used to have approximately 20,000 employees.
Enron’s greed Enron advertise itself as a profitable, prosperous company. However, using “mark-to-market accounting”,Enron records non-existent profits and makes a bad record. The CFO creates a network of shell companies to do business with Enron to hide its increasing debt. Enron 's executives encourage the company 's employees and the public to invest their money to buy Enron’s stock to increasing the …show more content…

They made the fraud accounting which makes those people lose their savings.
Community: The whole company lose community. They did not treat Enron company as the home, they just want to make their own profit from the company.
Responsibility：The managers of Enron did not take responsibility when Enron have problems and the executives ignore the warning of the financial problem. No one came out and stop the action. All they did is to hide the truth and continued to cheat to the customers.

III.Objection
A. Objection to Virtue ethics
The Enron company should choose to be honest to the customers and do not speculate their stock price to the public and investors.
The Enron should not make fraud accounting make their financial performance clearly and correctly.
The firm 's’ executives should control their ambition and do not make their own profits, they should take responsible to the whole company when it has …show more content…

As in the market, sometimes use the bluffing strategy is essential for company to develop. However, for the further development, the company must have its own virtue ethics.
V. Discussion
A.assess the strengths/weaknesses of the evaluation, objection, and response
Strengths: if Enron have virtue ethics, it may not go to bankruptcy. If the enron executives take community, responsibility, integrity and holism from the ethics, they may take actions and not make fraud accounting and do not cheat customers, the company will go further.
Weakness: In business market, the company sometimes need to take some “business ways” to make profits. If the company do not come up some ideas, they would not make money and win the competition.
B.specifically refer to the evaluation, objection, and response
Although Enron is go bankruptcy, as Enron developed to the top around the world. There are many problem around it, from innovation, from competition or from its ambitions. If Enron did not cheat customers for such a long time and have the courage to take responsibility, the company would go further. In my point of view, company may take some action of “bluffing” in the market, however they can not do anything out of the boundary and

Show More
Related

  • What Caused The Sarbanes-Oxley Act Of 2002

    71 Words  | 1 Pages

    The financial scandals in early 2000s caused the Sarbanes-Oxley Act of 2002 to be created. Enron, WorldCom and the accounting firm, Arthur Andersen, to intentionally mislead their shareholders by exaggerating their profits and understating their expenses. The scandals had raised the importance of internal control for enhancing corporate governance. Therefore, the government established the SOX to protect the interest of the investors and employees and to monitor the companies and auditors.

    Read More

  • Enron Analysis Essay

    887 Words  | 4 Pages

    Enron Analysis Enron is a great play which presents a dry story about business in a colorful and cartoonish way and impressed me with a variety of elements, including video, music, choreography, and dance. This is a play depicts the spectacular collapse of a Texan energy giant-Enron. As an audience, I witnessed how a business empire was built on shadows, accruing debts of 38 billion dollars and finally going bust in this two hours and thirty minutes play. In the following passage, I will describe, analyze, and interpret this play both about its script, including characters and plots, and its production, such as the videos, stage props and customs.

    Read More

  • Income Smoothing Case Study

    1491 Words  | 6 Pages

    This proves that throughout the case, Cendant Corporation wasn’t acting fully ethical nor with the desired fiduciary actions to their investors and the auditing team in this case being Ernst&Young. Aside from the trust being broken apart between both, there was never a sign of an internal control inside Cedant. Therefore, there shows that the corporate governance for Cendant Corporation didn’t have signs of existence as well. Most frauds that were occurring before the implementation of the SOX-2002, had top management such as in Cendant that didn’t have care for the ethical performances as much as in today’s corporate world with more regulations in hand by the government. At the end, Cendant had filings against them concerning their corporate governance

    Read More

  • Compare And Contrast Vermont And The State Of Texas

    791 Words  | 4 Pages

    There are laws and regulations that corporations are to follow and they know what they are doing before they are caught. They have the best attorneys at their defense, there punishment of having to repay back millions tarnishes their image, and people lose confidence and do not

    Read More

  • Eight Lenses In Business Ethics

    1306 Words  | 6 Pages

    1. Introduction – ethics – what are they? Ethics (or moral philosophy) is the kind of philosophy that define concept of right or wrong conduct. In practice, ethics try to resolve questions of human morality, by explaining concepts of good and evil. Ethics, culture, morals – are bind together, they are embedded.

    Read More

  • Milton Friedman's Views On Social Responsibility Of Business

    1245 Words  | 5 Pages

    Social responsibility of business has been a debated topic for years. The ideas of different businessmen have had effects on the direction of business in this period. This essay analyses two texts, which have Milton Friedman’s arguments about social responsibility of business and John Friedman’s ideas about Milton Friedman’s, by comparison and contrast method and includes this writer’s evaluation. Milton Friedman’s text is about the effects of the name of social responsibility on a private property system including executives, stockholders, employees and customers. He gives us some assumptions and examples of their potential results and impacts on corporations to express his ideas clearly.

    Read More

  • Bill Gates: Virtue Ethics And Virtue Ethics

    1054 Words  | 5 Pages

    Introduction The founder of Microsoft doesn’t need and introduction. Bill Gates is one of the wealthiest person in the world. He is well known for his harsh “do as I say, not as I do,” leadership style in the workplace. He was a visionary, and his vision was to build a company or product that would forever change the world The Bill and Melinda Gates Foundation were created by them both .Their

    Read More

  • Ethics And Moral Issues In The Enron Scandal

    931 Words  | 4 Pages

    In this Enron Scandal ,several moral issues and values are being discussed .The moral issues is the misconduct of code of ethics by management level of a corporation , violation of code of professional ,ethical dilemma that faced by a management level when involved own interest . The first moral issues that discussed in Enron Scandal is misconduct code of ethics by management level of a corporation .In this case ,the mastermind of this scandal is the company CEO , Mr .

    Read More

  • Ethical Issues In Waste Management

    1009 Words  | 5 Pages

    The false accounting records were unethical because it means management was enriching themselves. They were getting earnings based on the false availability of funds. They also did this to keep their jobs. When a company is not performing financially well the top positions are the ones usually at risk of being retrenched, as a result of implying the company was financially stable they were protecting their jobs. False accounting also results in duping investors that trust the financial records of the company.

    Read More

  • Stakeholder Theory

    997 Words  | 4 Pages

    The History of Business Ethics and Stakeholder Theory in America Ethics play a huge role in the global business field, since considerations have to be made on moral practices, values, and judgments that govern the direction and overall success of the company. Consequently, over the progression of history, managers, entrepreneurs, and stakeholders at the helm of organizations have always had the mandate of making moral resolves on matters of ethics. According to Hunter (2003), such an approach to ethical behavior prompts a substantial growth in the organizational corporation, as well as maximizing business profits, and creating a reputable company image (Cutler, 2004). Notably, the overall performances of organizations that take part in unethical

    Read More

  • Virtue Theory In Business Ethics

    958 Words  | 4 Pages

    Virtuous managers should begin by understanding what the facts are. Much of morality in business falls under the rubric of honesty. Honesty means being fit on reality. Dishonesty means self-delusion and in the long term, business will collapse. Honesty is closely related with success and it is one of the business virtues that managers should have.

    Read More

  • The Importance Of Business Ethics In The Business Environment

    1813 Words  | 8 Pages

    This statement is supported by Bennett (2014) wherein ethics clearly defines what is the right and wrong things and shapes what kind of behavior the business should act on. For the sense of business according to Joseph (2013), ethics are constructed and decided by each business and underpins decision that an employee makes. When it comes to the business’ environment, a well-constructed ethics is a key for a considerate and responsible decision making in a business (Bennett, 2014). Business Ethics is very important inside the company, it will show the moral standards that a company or business have whether it is right or wrong and good or bad.

    Read More

  • Unit 2 Business Ethics Task 2 P1

    1263 Words  | 6 Pages

    Ethics Program for 2015 Task 2 Erica Young Western Governors University – Missouri Table of Contents Code of Ethics…………………………………………………………………… .03 Acceptable Use of Electronic Mail………………………………………….. 03 Acceptable Use of the Internet ……………………………………………... 03 Acceptable Employee Conduct …………………………………………….. 04 Acceptable Dress Code ……………………………………………………..

    Read More

  • Ethical Issues In Accounting

    1710 Words  | 7 Pages

    These scandals have made the morality of accountants and businesspeople. The main contributors of business ethical standards are the accountants. The accounting profession has a duty to play so as to reduce the corporate scandals. They should make sure that there is proper financial management, quality audit, ethical standards improvement and that the governance regimes are strengthened

    Read More

  • The Importance Of Business Ethics In International Business

    1039 Words  | 5 Pages

    The earlier opinion stated that a business cannot be ethical, but this opinion is not used anymore in the modern business. Today business has belief that they must be responsible for social since they live and operate within a social structure. The key factors that make business ethics is important at the quarter of the 20th century are corporate social responsibility, corporate governance, and globalized economy. The culture of an organization, or else we can call it as the philosophy of an organization which is related with ethics have a great relationship with the performance of a business in long and short term. As a business is manage by human being, the people who manage a business

    Read More

More about The Six Virtues Of Virtue Ethics Case Study: Enron

Open Document