Utility Ethics: Enron
Utility Ethics at Enron
Why utility ethics is a valid way of deciding right and wrong
Utility ethics are considered to be universal, growth-driven, and offer service to the organization with the only consideration of the right and the wrong. Utility ethics is a valid way of deciding the right and wrong because growth does not always mean that it is right. The same perspective does not apply to failing: failure to grow does not mean the bad. Ethics touches on the best and universally acceptable interactions between the resources, human resource and tools for growth and development within an organization. Utility ethics are universal, with no bias, and always poised for higher chances of growth within an organization. Moreover, utility ethics consider the result and not the immediate results. They are founded on the basis that the process has to be good to have a better result hand (Madsen & Vance, 2009). In the end, the results will not make way to the process. The process does not matter until the result is obtained (Velasquez et al. 2008), as applied at Enron below.
Apply the test
Step 1: Identify the alternative actions that are possible and the persons and groups (the stakeholders) who will be affected by these actions.
Enron's culture is so to blame for the massive fall of its production processes. The cultural setup and the standards issued to cater for the employees and the management teams are not considered culturally and ethically up-to-date. First, it is important to relook at the employment strategy since it is a recipe to the fall of Enron. Employment should have been permanent no matter the result. Secondly, financial objectives and goals are good for Enron. Nonetheless, their pursuance should assure a good path that will give a progressive prediction process into a better result with the financial goals being made. Good profits are worthwhile if the process is not sustainable (Free et al. 2007).
From the two actions, some people will be affected. The management team will have to bear with these new strategies. The CEO, if he or she was for the current production process, will have to adjust to the new ways production that are not just looking at the product but considerate of the process. The employees will benefit with the chance of not being eliminated as unproductive at the end of the year. Moreover, the customers will not be so much bothered but will experience a change in the state of the quality of products at hand (Madsen & Vance, 2009).
Step 2: For each of the most promising alternatives, determine the benefits and costs to each person or group affected.
In this case, there are two most promising alternatives. These are the alternative to having a consideration of the means towards the end and the alternative of making employment permanent. The benefit of the first alternative is that being goal-oriented regarding finances is good but being the objective of the method will prove to be a way to have a sustainable business. This alternative is costly to the result. There is a likely chance that the result will have to be affected, probably in a negative way hand (Madsen & Vance, 2009). The later strategy is of its merits to the employees in that they will consider a better approach, contrary to the utilitarian approach of the result. Rather, the process will be deemed good, which will also, in a scenario of a high chance to likelihood, lead to better performance of Enron. Sustainability of the company would have been procedural and strong to date. This strategy will be costly to the employer, who will have to consider endurance as a way of monitoring minimal but growing performance of the company (Free et al. 2007).
Step 3: Select the action in the current situation that produces the greatest benefits over costs for all affected.
The best action in the current situation that will produce the greatest benefits over costs for all the affected is the action of permanency of employment for the employees at Enron. This will rather appear to deepen so much the benefits gained by the employer. Nonetheless, stringent measures of growth to meet the previous levels of production will be a hard task for the employees. Permanency of employment is a benefit to both of the parties. The employer will have to be content with the new rates of the product and consider the benefits of sustainable productivity on an average scale. On the other...
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