question archive Enron, an energy distributing company was in a partnership with Arthur Anderson, an accounting firm
Enron, an energy distributing company was in a partnership with Arthur Anderson, an accounting firm
Subject:BusinessPrice: Bought3
Enron, an energy distributing company was in a partnership with Arthur Anderson, an accounting firm. Arthur Anderson was responsible for auditing the financial books of Enron, which means to examine, inspect, and report proper financial information to the public and Enron's investors. Executives from both businesses secretly knew that Enron was in financial disaster and changed the numbers around in the financial books to show that the company was doing quite well. They shredded documents to hide the fact that Enron was in financial trouble. Enron executives later told their employees through emails that the company is growing and in good financial status and Enron, employees were encouraged to invest in the company through their 401K, retirement account. Several months later, Enron filed for bankruptcy and their stock price fell from $65 a share to $0.60 a share.
Source : Adopted Trevino et al., (2014) Managing Business Ethics Questions
a) Analyze Enron's action using appropriate moral theories.
b) If you were an Enron executive, what would you do? Justify your answer
