Free Essay

Ethical Analysis

In: Business and Management

Submitted By kkendrick
Words 632
Pages 3
Ethical Analysis
Kimberly Kendrick
MBA/5310
January 29, 2014
Mr. Van Buskirk

Ethical Analysis The problem with scams is that you never know until it is too late. People who obtain money from dishonest means could spend the course of a lifetime and never pay stakeholders back. Stakeholders and shareholders alike are in a uniquely vulnerable position which becomes clear in most business schemes (“The Biggest Stock Scams of all Time”, 2011). Corporate scandals for over a decade serve as a reminder of the inability shareholders have to effectively control management and its owners in business. In the Enron, World Com, and Tyco disasters for every employee whose job was displaced another shareholder lost on average $4 million. Enron continued to exist under Chapter 11 protection until 2004 until assets where liquidated to pay off debtors. Prior to the debacle this company was the seventh largest energy company in the U.S. based out of Houston. The controversy arose when Enron allowed investors to be fooled into thinking the company was stable keeping hundreds of millions of debt off of its books. Shell companies that were run by the organization recorded fictitious revenue giving the illusion of unbelievable earning figures ("The Biggest Stock Scams of all Time”, 2011). This deception eventually unraveled causing share prices to dive an example of their inability to use market ethics and allowing greed to overtake their common sense and use of principles (Gauthier, 1986). Soon after Enron rocked the nation with the discovery of its scandals telecommunications giant World Com came under scrutiny. It was discovered that this corporation was “cooking the books” recording office supplies as operating investments capitalizing on the cost of these items for years. The company used this accounting trick by exaggerating profits while expenses were being accrued making the company appear to be worth over a billion dollars. During this time business was becoming increasingly unprofitable, investor watched as shares plummeted from $60 to less than .20 cents. People most affected by the organizations downfall where the employee’s stakeholders in which ten of thousands of their jobs were lost. This incidence displays a lack of organizational ethics the similarities to Enron are that greed was a factor in the downfall of both. Self-interest played a part in the acts of each perpetrator not realizing or caring about the people who would be affected ("The Biggest Stock Scams of all Time”, 2011). Tyco a manufacture of health care, safety equipment, and electronic components ensured stakeholders that 2002 would be a good year for stocks. The CEO had previously been named one of 25 top corporate managers by BusinessWeek. Dennis Kozlowski later was reported siphoning money from Tyco in the form of fraudulent stock sales and unapproved loans. Kozlowski along with other business executives took the company for upwards of over $450 million further supporting their lavish lifestyles. This caused Tyco’s share price to decrease over the course of six weeks 80 percent. The group was sentenced to 25 years in prison ("The Biggest Stock Scams of all Time”, 2011). In comparison these cases have similarities in which the same ethical principles can be applied. The disclosure rule, market ethics, organizational ethics, and also intuition ethic should have been taken in account for each issue. Ethicist speculate that it is correct to associate agency theory with the analysis that people act completely cunning and deceitful even when its not necessary, but whenever it is advantageous for them to do so which perhaps explains each of these sandals (Hausman & McPherson, 1996).

References Daniel M. Hausman and Michael S. McPherson, Economic Analysis and Moral Philosophy (Cambridge: Cambridge University Press, 1996) David Gauthier, Morals by Agreement (Oxford: Clarendon, 1986), p. 7. The Biggest Stock Scams of All Time. (2011). Retrieved from http://www.investopedia.com

Similar Documents

Premium Essay

Ethical Analysis

...Ethical Analysis Nancy B.Yarnell Legal 500 Matthew D. Miko, JD May 20, 2010 Strayer University This paper will discuss the ethical dilemma that John is facing with his store manager, Selma. It will identify the key stakeholders that will be involved and the impact on the operational/ethical issues on the stakeholders. It will also identify and summarize the key ethical issues in the situation and there will be an ethical perspective applied to each along with my opinion as to what aspects of the situation would demonstrate ethically sound behavior and which would illustrate unethical behavior. Finally it will discuss the cost and benefits of the action that I think should be taken, based on the two ethical perspectives that were discussed. Jon recently found out that Selma has been taking money without ringing up the sale. She has been using the money as incentives or bonuses for her employees. This is agiants the company’s conduct policy as she is stealing from the company and causes some serious issues for Jon because he is up for a promotion. If the higher ups were to find this out would raise questions as to Jon’s qualifications for a senior-level position with the company. In addition to Selma taking the unrecorded sales, Selma’s...

Words: 1211 - Pages: 5

Premium Essay

Ethical Analysis

...1)  Identify the ethical actor (who took the action that you will subject to the ethical test.  Almost all situations have multiple ethical actors, including the "victim".  Pick one, if available, whose action is not clearly ethical or clearly unethical; these make for more interesting discussion) I choose the British government as my ethical actor. 2)  Identify the action that is being reviewed for its ethical consequences/nature (being specific as to the action allows application of your ethical standard). Pressuring torrent sites to shut down. 3)  Select an ethical test.  Include the applicable provisions of that ethical test (you can use any ethical test you feel applies, including and not limited to the cowboy code, Kantian ethics, utilitarianism,  the ACM code of ethics, the class' ongoing ethics standard, etc.) Utilitarianism is the best test to use for this action. It is only concerned with the outcome of an action, and maximizing utility. 4)  Apply the specified provisions of the ethical test you selected to the specific actions you are testing.  Is the action ethical, unethical, both ethical and unethical, ethically neutral, etc.? I believe this action is unethical. The government is more concerned with the rights of a select few holding copyrights over those of the masses which do not. The government is pressuring torrent sites to close down before a law has even passed declaring them illegal. Furthermore, I believe torrents are ethical. It is a technology...

Words: 310 - Pages: 2

Premium Essay

Ethical Analysis

...Controversial issues happen for every day, about a wide variety of matters, from small to large, from political conflicts to social debate, and when thinking about a controversial issue, I would consider these perspectives so as to decide whether the action is right or wrong. First, I believe that law is the first defensive line of a controversial issue to define it as right or wrong, as law establishes rules that are stated as the indication of the society, which prohibits citizens to violate some severe crimes like smuggling and robbery, just like the social controversial issue Occupy Central in last year, some protestors were caught because they were using to fight back against the policemen during the event. Therefore, the law should be obeyed and used as one of the considerations. Besides, the social morality can also judge the actions. There are some common ethics that is not written in the books of law but will be followed by citizens since we believe that these common ethics can help a country maintain it order. For example, Hong Kong has promoted the priority seats in MTR and buses, there society’s common value is to leave these seats for the elderly, pregnant women and physically disabled people, some people have even uploaded to social network once these seats are not given out to criticize them. The conflicting issue has made a new social phenomenon, a common value to think of the correct action The...

Words: 326 - Pages: 2

Premium Essay

Analysis of an Ethical Dilema

...Running head: ANALYSIS OF AN ETHICAL DILEMMA Analysis of an Ethical Dilemma NRS 437V December 11, 2011 Analysis of an Ethical Dilemma Euthanasia, sometimes referred to as mercy killing, is an act by a third party that causes a patient’s death. Such acts include administering a lethal dose of medication by way of injection or mask, usually to a seriously ill patient. This analysis will discuss the ethics of euthanasia as it relates to nursing, laws, society, and the stakeholders involved in the scenario. The American Nurses Association (ANA) believes that the nurse should not participate in Active euthanasia because such an act is in direct violation of the Code for Nurses with Interpretive Statements, the ethical traditions and goals of the profession, and its covenant with society. (Task Force on the Nurse's Role in End-of-Life Decisions, 2011) While patient advocates should be vigilant for providing diligent care, they should perform their tasks with respect, support and due commitment towards their care. In healthcare practice, in order to relieve pain and suffering, there is an obligation to promote dignity and autonomy of patients. Euthanasia is a complex issue in which nurses are uncomfortable determining the life and death of a patient. Nurses have to practice ethical principles of beneficence, which maximize benefit and reduce potential risk and harm to the patient. Non-malfeasance is another ethical issue in which a nurse should do no harm. A competent...

Words: 1165 - Pages: 5

Premium Essay

Analysis of an Ethical Dilema

...Running head: ANALYSIS OF AN ETHICAL DILEMMA Analysis of an Ethical Dilemma in Society Geana Terry Grand Canyon University NRS 437V May 8, 2011 Analysis of an Ethical Dilemma in Society Nurses and society are faced with ethical dilemmas on a daily basis. Ethical dilemmas are difficult situations that have conflicting moral claims and can cause great distress to those who face the problem. In dealing with ethical dilemmas we use a systematic process which aids us in determining a reasonable solution to the dilemma. It is important to use not only an emotional perspective but an objective and cognitive perspective as well. Combining our values and morals in our decision making will have a huge impact in the end result of our decision. A recent event that has happened in our society involves a parent who has given his toddler liquid cannabis without doctor knowledge. This situation was aired on ABC News on May 5, 2011. The article is titled “Montana Dad Gives Cancer-Stricken Boy Marijuana Behind Doctor’s Back” (James, 2011). A two year old child named Cash was diagnosed with a stage four brain tumor. He lived in Montana and was taken to Salt Lake City, Utah for extensive chemo therapy treatment. He suffered septic shock, a stroke, and a pulmonary hemorrhage. The child was extremely sick and went 40 days without eating. Due to the nature of his illness his body was shutting down and the family was frightened. Doctors were doing everything possible...

Words: 1381 - Pages: 6

Premium Essay

Analysis of Ethical Dilemma

...Analysis of Ethical Dilemma Name: Institution: Analysis of Ethical Dilemma Introduction and Facts It is important that individuals take into account the impact of their decision on themselves, others potentially involved, institutions and the world. Individuals can make ethical decision only if they understand the potential effects of their decision. Ethical decision making is an intricate process where individuals must consider impact of decisions or actions resulting from the decisions made on individuals or institution. The basis of ethical decision-making encompasses balance and choice (Levin & Mather, 2012). Law is one of the professions that demands practitioners to make ethical decisions to avoid messing up their clients and third parties. They are required to employ American Bar Association (ABA) Model Rules of Profession Conduct throughout their professional undertakings. In the paradigm case, Justin King is involved in an accident and this has resulted to lawsuit. The circumstances surrounding the incident call for due diligence from both defendant (Justin) and his legal team. As such, there are various issues affecting this situation. The first issue is whether the ethical duty of confidentiality applies to Justin’s situation. Various laws and regulations govern a lawyer’s conduct. As indicated earlier, ABA Model of Rules of Professional Conduct is a set of principles that governs the conduct of lawyers in their endeavors...

Words: 1314 - Pages: 6

Free Essay

Analysis of an Ethical Dilemma

...Collaborative Learning Community: Analysis of an Ethical Dilemma Collaborative Learning Community: Analysis of an Ethical Dilemma (Part 1) In your CLC group, select one of the following three options and view the video related to your chosen topic (a description of each is provided along with a link to access the electronic media): Dilemma 1: Embryo Harvesting and Freezing/Genetic Manipulation (Posthumous Conception Case) Ethical issues related to case: http://www.youtube.com/watch?v=EIenB7qgIVk Washington Post article of Karen Capato Case: http://articles.washingtonpost.com/2012-03-19/politics/35450022_1_karen-capato-robert-capato-survivor-benefitsUS Supreme Court (2011) Ruling on Capato Case: http://www.supremecourt.gov/opinions/11pdf/11-159.pdf Description: Eighteen months after her husband, Robert Capato, died of cancer, respondent Karen Capato gave birth to twins conceived through in-vitro fertilization using her husband’s frozen sperm. Should technology be used to create live posthumously? Dilemma 2: Marketing of Medical / Pharmaceutical Products Holding Back the Years? The Race to Slow the Aging Process http://library.gcu.edu:2048/login?url=http://digital.films.com.library.gcu.edu:2048/PortalPlaylists.aspx?aid=12129&xtid=36189 While medical treatments and pharmaceuticals are common approaches to address a wide variety of conditions, there is growing concern from consumer groups and the medical community regarding current marketing practices which...

Words: 653 - Pages: 3

Premium Essay

Analysis of an Ethical Issue

...Analysis of an Ethical Topic Bincy Mathew Grand Canyon University NRS-437V Ethical Decision Making in HC November 5, 2011 Introduction Nurses make decisions every day that must take into account laws and ethical standards. In order to make appropriate decisions, nurses require an understanding of how laws, ethics, and nursing interface. Nursing is a profession that deals with the most personal and private aspects of people’s lives. It is through the intimacy and trust inherent in the nurse-patient relationship that nurses become critical participants in the process of ethical decision making. Determining the existence of an ethical dilemma is the beginning step in the process that includes defining the problem, identifying desired objectives, listing and evaluating alternatives, choosing the best course of action based on one’s knowledge and the current circumstances, and evaluating the outcomes of the action taken. Analysis of the ethical topic April 01, 2011- A 38 year’s old patient, John Doe, is evaluated in the ER for increased fatigue, low grade fever, abdominal distention, nausea, and electrolyte imbalance. Upon completing her assessment the patient asks nurse Chacko to promise will not divulge to his wife that he also has a male lover, and ask nurse Chacko not to divulge neither to his wife nor to his lover any information regarding a possible diagnosis of Hepatitis C or HIV diagnosis. Nurse Chacko finds out that the patient is...

Words: 1418 - Pages: 6

Premium Essay

Ethical Dilemma Analysis

...Analysis of an Ethical Dilemma (Part Three) Euthanasia as a dilemma is convoluted, controversial and a sensitive matter for the reason that it concerns a person’s life, concerns his/her culture, belief, religion and their outlook about life and death. Euthanasia is a term that describes engaging in deliberate action, directly or indirectly, with the intention of ending one’s life to relieve them of their pain and suffering (Levy, Azar, Huberfeld, Siegel, & Strous, 2013). To the majority, this meaning lacks lucidity and uniformity which results in serious debate. This paper will provide a brief overview of euthanasia, discuss autonomy as a resolution to this dilemma and also recount the perspectives of three individuals who agreed to be interviewed...

Words: 951 - Pages: 4

Premium Essay

An Ethical Analysis of Whistleblowing

...Ethics is the study of determining moral conductivity through critical reflection and analysis. Ethics is a process – it is about getting to a solution by questioning the norms; it is because we have different moral norms (from different moral authorities like societal, familial, cultural, religious, etc.) that we have so many different ethical theories1. Having varied ethics for us to follow allows us to exercise our rationality and put ethics into practice by questioning what we see around us1. This case exemplifies the moral dilemma of how democratic government corruption and monopoly is capable of endangering the public food supply. The ethical dilemma here is whether or not Dr. Chopra did the right thing by violating superior norms and coming out with the ugly truth – more colloquially known as whistle blowing. My convictions are that Dr. Chopra and his team acted ethically in coming out with the truth to help safeguard and protect the health of fellow Canadians. This will be demonstrated through the lens of four moral theories namely, Aristotle’s virtue ethics, deontology and Kantian ethics, utilitarian ethics. The advantages and disadvantages of each school of thought will be presented, followed by a discussion of Dr. Chopra’s whistle blowing according to each philosophy. Aristotle’s virtue ethics stems from the work that Socrates and Plato did; however, it differs in that it focuses on the moral character of each individual as opposed to the rules and principles...

Words: 1367 - Pages: 6

Premium Essay

Analysis of an Ethical Dilemma

...Analysis of an Ethical Dilemma Grand Canyon University Analysis of an Ethical Dilemma Euthanasia is considered “assisted suicide” (Ethical key issues- Euthanasia., 2011). Terminally ill, old age, and poor disease prognosis’s are some population of patients that research euthanasia. Euthanasia is currently illegal due to many ethical implications. Euthanasia is an ongoing ethical dilemma that affects nursing as a profession, has legal implications, and stirs up ethical debates over social values, morals, and norms. “Standard 7, under the heading “Standards of Professional Performance,” reiterates the moral obligation of the nurse to practice ethically and to provide care “in a manner that preserves and protects healthcare consumer autonomy, dignity, rights, values, and beliefs” and “assists healthcare consumers in self determination and informed decision-making”” (ANA position statement, 2013). Nurses in all healthcare related settings play a key role in patient care at end-of –life. Nurses’ care for the physical and spiritual needs of patients and their families while, also collaborating with all members of the interprofessional healthcare team. Nurses witness the devastating effects of life-threatening diseases. It is difficult to balance amongst saving a life and the enabling of a dignified death. Nurses need to keep their own feelings in check because they could have an influence on clinical decision making. “It is within the framework of the Code for Nurses and...

Words: 1173 - Pages: 5

Premium Essay

Analysis of an Ethical Dilemma

...Running head: ANALYSIS OF AN ETHICAL DILEMMA: ARIZONA SHOOTING Analysis of an Ethical Dilemma: Arizona Shooting Tragedy Thomaline Turner Grand Canyon University NRS 437V January 22, 2011 Analysis of an Ethical Dilemma: Arizona Shooting Tragedy Objective: An ethical dilemma can be characterized as a set of circumstances where one’s typical guiding moral influences clash in such a way that any possible conclusion will be perceived unfavorably. In today’s world, healthcare professionals can expect to be increasingly confronted with and play key roles in the resolution of ethical dilemmas (Burkhardt & Nathaniel, 2008). This paper serves to explore, in detail, an ethical dilemma relating to civil confinement and the implications from its lack of use in regard to the recent Arizona shooting tragedy. A January 11, 2011 article obtained from The American Broadcasting Company (ABC) News called “Tucson Shooter Jared Loughner: Could Anything Have Stopped Alleged Gunman?” will be a prime resource for this purpose. This paper will examine the alternative of civil confinement and its significance in the context of this tragedy using Uustal’s framework for ethical decision making. Ethical theories and principles will be presented and discussed as supportive arguments. Event, Ethical Implications, and Concern: Earlier this month, on January 8, 2011, nineteen people were gunned down outside of a Tucson-area supermarket, six of them fatally, in a massacre-style shooting...

Words: 1889 - Pages: 8

Free Essay

Analysis of Ethical Dilema

...Analysis Of An Ethical Dilemma From Current Events Analysis of Ethical Dilemma from Current Events Karen Perion Grand Canyon University Analysis of Ethical Dilemma from Current Events “A dilemma is a problem that requires a choice between two options that are equally unfavorable and mutually exclusive” (Burkhardt, 2008, p. 118). Ethical dilemmas involve conflicting moral debates. People deal with dilemmas daily; whether or not they realize it. Deciding between two different jobs, figuring out which party to attend on the same night, or giving a patient pain medication knowing they are addicted are dilemmas one might be faced with. Knowing how to overcome and work your way through a dilemma is the expectation. I found an article in The SUN discussing a mother, Kerry, injecting her eight year old daughter, Britney, with Botox and giving her body waxes to make her a superstar. Every three months, Britney watches her mother prepare needles of Botox and fillers to be injected into her face (Pearce, 2011). Kerry, who is a beautician, buys these products online and injects them into her daughter’s lips, forehead and around her eyes. Britney also receives body waxes in hopes her hair will stop growing once she reaches puberty. Kerry says the reason she does this is because her pageant-daughter is destined to become an actress, model, or singer one day. Ethically, this could damage her daughter. The insecurities, self-esteem, and body image issues could be detrimental...

Words: 340 - Pages: 2

Premium Essay

Walmart Ethical Analysis

...Wal-Mart Ethical Analysis Abstract Wal-Mart prides itself on having one of the strictest and most stringent ethics policies in the industry. Employees are not allowed to accept any type of gift, including a cup of coffee. And its 1.3 million employees are encouraged to report any ethics violations that they might suspect or see. With having such a strict policy, Wal-Mart faces around 5,000 lawsuits a year from unethical business practices. Wal-Mart's rating as a company that consumers trust and respect has steadily declined in the last few years. Their image is declining due to negative press giving the perception that Wal-Mart is bad for the economy and is unfair to workers. Wal-Mart Ethical Analysis Wal-Mart was established in 1962 when Sam Walton, who had operated stores in Arkansas and Missouri, decided to open a discount store. In fifty years Wal-Mart has grown to be the largest retail chain in the world. Wal-Mart Stores, Inc. is not only the largest retailer in the world; it is now also ranks as the largest corporation in the world. Wal-Mart operates over 6,000 stores in the US and 13 international markets including the UK, Canada, Japan, Mexico, Brazil and China. It also retails products through its online site. The company is headquartered in Bentonville, Arkansas and employs around 1.3 million people. A business Code of Ethics (COE) is a written set of guidelines issued by an organization to its workers and management to help them conduct their actions in...

Words: 1822 - Pages: 8

Premium Essay

An Ethical Analysis of Negligence

...An Ethical Analysis of Negligence In this paper, the author will describe the main differences among negligence, gross negligence, and malpractice in the medical field. In addition, the author will explain his opinion about this article and the facts described in it as well as the rationale used to form this opinion. Furthermore, the author will describe the importance of documentation in the medical field as well as how nurses should document when providing care while complying with legal and ethical requirements. Unintentional torts are the most common torts in the medical field. Torts are acts occurred without the tortfeasor intention to cause harm; however, some type of harm results from it. Torts are also actions committed unreasonably or disregarding the consequences, in legal terms this represents negligence (Judson & Harrison, 2010). According to Judson and Harrison (2010), negligence is an unintentional tort and a person is negligent when in similar circumstances he or she did not performed as expected from a reasonable person (Judson & Harrison, 2010). Defining gross negligence is a more complicated issue. According to Thornton (2006) the Texas Civil Practice and Remedies Code defines gross negligence as an act of omission that when viewed from the position of the actor at the time the omission occurred it shows a significant degree of risk and possible harm to others (Thornton, 2006). In addition, the actor is aware of the risks but proceeds disregarding the rights...

Words: 1635 - Pages: 7