Share
Explore BrainMass

Ethics issues and resolution

Please help me with this assignment:

Select an organization ethics issue. Based on the selected issue, apply each of the six ethical decision-making steps to your selected issue. Be sure to discuss the six distinct parts that correlate to the following items:

a. Issue clarification
b. Stakeholder analysis
c. Values identification
d. Issue resolution
e. Addressing objections
f. Resolution implementation

Please include references.

Solution Preview

Select an organization ethics issue. Based on the selected issue, apply each of the six ethical decision-making steps to your selected issue. Be sure to discuss the six distinct parts that correlate to the following items:

a. Issue clarification
b. Stakeholder analysis
c. Values identification
d. Issue resolution
e. Addressing objections
f. Resolution implementation

I have taken the issue of corruption and defrauding shareholders. I have taken the example of Enron:
a. Issue clarification
Enron was founded on January 1, 1985 with the merger of Houston Natural Gas (Houston, TX) and InterNorth (Omaha, NE), and became the nation's largest gas pipeline system with a network of more than 34,000 miles. The company was at a compound annual rate of more than 60 percent from 1995 through 2000. The highest and amazing growth came in 2000, which its revenues increased from $40 billion in 1999 to over $100 billion just a year later. At the time it filed for bankruptcy on December 2, 2001, it was
considered the seventh largest publicly traded corporation in the United States. Enron's bankruptcy caught and shocked many investors because they were surprised that the company's executive members like Cindy Olsons were unaware of the firm's financial obligations. These obligations were "contingent liabilities related to unconsolidated off-balance sheet special purpose entities SPEs substantial liabilities appeared on the balance sheet as "liabilities from risk management activities." (Grazian).

Infact the executives like Cindy Olson and insiders at Enron knew about the offshore accounts that were hiding losses for the company, however, the investors knew nothing of this. Chief Financial Officer Andrew Fastow led the team which created the off-books companies, and manipulated the deals to provide himself, his family and his friends with hundreds of millions of dollars in guaranteed profits, at the expense of the corporation he worked for and its stockholders. (BBC NEWS, 2002)

b. Stakeholder analysis
In August of 2000, Enron's stock price hit its highest value of $90. It was at this point in time ...

Solution Summary

This discusses ethical issues and its resolution for the organizations

$2.19