Through her actions and label as the Enron whistle-blower, it can be said that Watkins is at level three, yet more specifically, stage six of moral reasoning. When huge cash or options bonuses are dependent upon achievement of one or a few narrowly defined profit or growth goals, the temptation to manipulate the numbers to get the rewards will be too great.
These will be discussed accordingly in the following sections. I believe that I have no right to steal anything since I am living very comfortably, with respect to most humans, and I am satisfied with my economic position. This is clearly demonstrated through the concealing of internal debates and non- compliant behaviour such as inflating financial figures so as to remain the sole accounting firm of Enron.
Wednesday, June 18, The Enron Scandal: I do believe Enron will be the morality play of the new economy.
Yet critical analysis revealed that Skilling could have undergone selection-socialisation, or a mild form of regression from a higher level as a result of conformity and the surpassing of self-interest.
This section requires auditors to alternate partners allotted to clients; this allows fresh eyes to independently review prior work and avoid employment relationship that undermine auditor independence.
Cunningham and Harrisp. Additionally, virtue ethics can justify a breach of duty depending on the virtuous person and the situation. If Kenneth Lay had actually done something about the problem, share values might have gone down after the corrected financials came out, but the company would probably Enron ethical analysis survived.
The judgements within this Simardeep Sran ID: Overall, it has been shown that Arthur Anderson exercised a clear lack of professional independence in its dealing with Enron.
Sherron Watkins, the CPA, could have been seen as virtuous person with high moral principles when she uncovered the accounting scandal by showing her determination to expose the fraud rather than concealing it.
Someone in the corporation was mistaken as to the loyalty of people to companies over people and money. This theory is comprised of three levels pre- conventional, conventional and post-conventional respectivelyeach of which contains two stages, all attributing specific reasons as to why a particular ethical decision has been made as opposed to emphasising the role of the decision itself.
Among them are the conflict of interest between the two roles played by Arthur Andersen, as auditor but also as consultant to Enron; the lack of attention shown by members of the Enron board of directors to the off-books financial entities with which Enron did business; and the lack of truthfulness by management about the health of the company and its business operations.
When the whistleblower informed him of the suspicious activities of his underlings, he decided not to do anything about the situation. It was clearly seen throughout the film that the position Simardeep Sran ID: Instead, he forced the whistleblower to go outside the company and caused the resultant financial collapse of Enron.
If Kenneth Lay had actually done something about the problem, share values might have gone down after the corrected financials came out, but the company would probably have survived. An Ethical Analysis In October of a corporate scandal was revealed that led to the bankruptcy of Enron, an energy company based in Houston, Texas.
Not only does this encompass the reasons of the decisions made by Skilling, yet runs parallel to the argument made by Jones in which he indicates that although higher levels of cognitive reasoning represents sequential progression, the ability to adapt or degenerate to a lower stage can be explained by selection-socialisation, or simply, the pressure felt by a person to conform to the cognitive stages of those around them.
It is very unfortunate that the Enron situation occurred at all, but it is fortunate that it was exposed in a somewhat timely manner and the people responsible are being brought to justice. This further supports the notion the Watkins had achieved level three, or post conventional cognitive reasoning.
I think that if Kenneth Lay and Jeffrey Skilling had applied the Kantian concept of reversibility, and asked themselves how they would feel if their employer betrayed them and caused them to lose their life savings, they would have acted differently.
Simardeep Sran — Due: It is also interesting that Kenneth Lay grew up in poverty, but he was willing to throw away all of his progress just to make some extra money. According to Dellaportas, Thomsen and Conyonp. I think that if Kenneth Lay and Jeffrey Skilling had applied the Kantian concept of reversibility, and asked themselves how they would feel if their employer betrayed them and caused them to lose their life savings, they would have acted differently.
I believe reversibility is one of the best ways to evaluate the ethicality of decisions since it forces a person to think about what the other person feels like.Ethical Behavior Analysis of Bernie Madoff & Enron Ethics, ethical values, and social responsibility should all work in unison in a corporate business structure.
These key traits are better. Free Essay: There was a vast number of ethical issues raised in the movie “Enron-the Smartest Guys in the Room” but the four I am going to focus on are.
Keywords: Enron scandal, Accounting fraud, Moral responsibility, Analysis 1. Review of Enron’s Rise and Fall Throughout the late s. An Ethical Analysis of the Enron Scandal Essay Sample The Enron scandal is one that left a deep and ugly scar on the face of modern business.
As a result of the scandal, thousands of people lost their jobs, some people lost their entire pensions, and all of the shareholders lost the money that they had invested in the corporation after it went bankrupt. An Ethical Analysis of the Enron Scandal The Enron scandal is one that left a deep and ugly scar on the face of modern business.
As a result of the scandal, thousands of people lost their jobs. The Enron people may very well be the good people they present themselves to be. "My biggest ethical problem is that I incent people to keep clients at all costs.Download