ACTIVITY 3
MB651 Ethical Decision Making and Business Culture
Lesson 3: Acceptable Risk: Management, Employees, Consumers, Investors, and the Environment
Activity 3: Enron Analysis
Several years ago, the Enron Corporation was a high-tech investor's dream. Stock prices were high, employees were able to buy stock and invest in their 401K plan, morale was high, and things were apparently going smoothly. Their auditing firm, Arthur Andersen supported the financial numbers that were given to the public as to the soundness of the company. Then a whistleblower from the inside (a vice president) revealed that there were many other corporations formed within the company, and monies were loaned to top officials of the company. In a matter of weeks, Enron became (at that time) the largest bankruptcy case in American business history. Later it was discovered that senior managers took millions of dollars through stock transactions and, at the same time, were telling employees that the company's future looked bright. Many employees lost all their retirement assets, and stockholders lost millions.
Delineate the ethical standards violated in the Enron case based on each of the six (6) ethical theories studied thus far. Begin by briefly identifying/defining each of the six (6) ethical theories. Next, focus on those standards violated by Enron, and discuss five (5) issues related to utilitarianism, five (5) issues related to Kantianism, three (3) issues related to rights issue ethics, four (4) issues related to virtue ethics, six (6) issues related to feminist ethics, and four (4) issues related to common moral theory. Then, briefly discuss 10 standards violated by Arthur Andersen. Your Activity responses should be both grammatically and mechanically correct, and formatted in the same fashion as the Activity itself. If there is a Part A, your response should identify a Part A, etc. In addition, you must appropriately cite all resources used in your response and document in a bibliography using APA style. (100 points)
(A 3- to 4-page response is required.)
