Question

What ethical theory did the Executives from Enron display in their actions from 1990 to their demise in 2001? Is Egoism an acceptable way to act in today's 21st Century world? Why or why not?

Answer 1

The events causing the collapse of Enron can be analyzed with the ethical frameworks theories - deontological theory, consequentialist theory, and virtue ethics.

-- The deontological theory suggests that a moral individual will choose the moral path and the theory is concerned with the actions the individuals take, instead of the consequences of those actions. The management of Enron had an implicit fiduciary duty to the shareholders of the company based on their employment terms to conduct operations in an approach that does not cause harm to the firm. However the Arthur Anderson, and other Enron executives reflected fake profits year in the financial statements although they were failing in numerous projects. By concealing the debts and giving the inaccurate financial condition true financial position and thus caused harm to the investors.

-- According to the consequentialist theory an act would be ethically wrong when the consequences causes harm to the majority of people in a society. In the Enron, the consequentialist theory is applicable as the management and the auditors of the firm were unethical because performed their job role in an approach that outcome was beneficial only for a small number of people and damage the larger number of people.

-- Virtue ethics theory suggests focusing on intent of the participant, and distinguishes itself from the outcome as of consequentialism. According to this theory the managers and auditors of the Enron Company were unethical because they did not behave in an approach expected of a virtuous person in the similar situation.

In my opinion the Egoism will be an acceptable approach to act in the 21st Century world. The theory suggests that people act in their own interests and the today's culture focuses on the interest in self-esteem, self-improvement, and self-gratification