CHAPTER 5notes Enron

							                                      CHAPTER 5

                                   LECTURE NOTES

1. Approaches/criteria/viewpoints for evaluating ethical behavior and application to
       Cases, pp. 132-138, slides 4-10.
      Utilitarian, Individualism long-term, Moral-rights, and Justice approaches
      Alternative actions to an ethical dilemma are tested by using these four
      approaches to evaluate the potential outcomes of each alternative.

2. Ethics and social responsibility—economic, legal, ethical, and discretionary, pp 138-
       144, slides 12-14
        Also, the domain of ethics is one of the three domains of human action (pp. 140-
       141); the domains of law and free choice also govern the determination of what is
       right or wrong (definition of ethics).

3. Four levels of organizational approaches to environmental responsibility, with an
       example of each, pp.142-148 (also called Ethics of Sustainability and the
       Natural Environment or “Shades of Corporate Green”), slides 15-19.

4. Enron Movie: Answer the following questions regarding Enron’s illegal and unethical
behaviors.
Enron: The Smartest Guys in the Room

Explain Enron’s history of fraud

Describe the major players and their views, roles, and relationships

      Ken Lay
      Cliff Baxter
      Jeff Skilling
      Andy Fastow
      Lu Pi
      Sherron Watkins

Explain the corporate culture of Enron

What was Arthur Anderson’s role and the company’s final outcome from this role.

      Accounting irregularities and scandals

Explain the significance of the stock price to Enron’s upper executive

Describe the unethical behaviors in terms of ethical theories discussed in
Chapter 5

What was the end result—who paid the price?