Verified Document

Merrill Lynch Barge Scenario Case Summary -- Case Study

Merrill Lynch Barge Scenario Case Summary -- Enron, a Texas-based energy company, was created in 1985 and had such phenomenal growth it was soon the seventh largest company in the U.S. until its bankruptcy in 2001. Enron was involved in a number of scandals, among which was the Nigerian Barge Case. Essentially, Enron attempted to sell interest in three power-generating barges off the coast of Nigeria, but was unsuccessful. By December of 1999, Merrill Lynch agreed to buy Enron's interest. Enron "loaned" ML 75% of the money, offering ML a guaranteed return of 15% on 7 million dollars ($1.05 million in 6 months). Essentially, the entire deal was a fraud, designed only to make Enron appear more profitable than it was. Most of the Enron promises were verbal, and the situation was never really a "sale," but a short-term leverage loan. Enron's objective, in fact, was to improve the way its income statement looked, so that it could borrow money at a lower interest rate, pay higher bonuses, and retain its momentum. Enron was unable to find a purchaser within the agreed upon timeframe, so its CEO, Andrew Fastow, arranged for another Enron company, LJM2, to fulfill the deal. As a result, ML executives were accused of obstruction justice, conspiracy, fraud, and lying (Flood, 2005; Ethics in Finance, Chapter 11).

Kantian Ethics - "To tell the truth is a duty, but is a duty only with regard to one who has a right to the truth. But no one has a right to a truth that harms others" (Immanuel Kant, "Grounding for the Metaphysics of Morals"). To many, Kant is the father of modern ethics, developing the view that morality is derived as an absolute -- or categorical imperative, necessary for human society to live...

There are two types of concepts: 1) empirical, or ideas we learn about through our experience, and 2) a priori ideas that we reach because they simply exist in nature. Moral actions, to Kant, are a priori - "Reason's function is to bring a will that is good in itself, as opposed to good for some particular purpose"(Flikschuh, 2000). Kant then says that there are at least three propositions about duty that speak to our situation: 1) is the action to be taken morally good and done from duty? 2) is the action judged by a principal of a moral maxim for society, or 3) is the action not in respect for morals or law, but for the imperative of reason that goes beyond our other interests.
Virtue Theory -- Since humans began living in cities and organizing social and political organizations, they have debated what is good, what is evil, what makes one action moral, the other immoral, and how the philosophy of ethics balanced with virtue helps both society and the individual. For many, virtue is the theory of how each individual should be moral so that we can not only get along with others, but form a more positive and productive society. In fact, one assumes that part of being human in an advanced society is knowing the difference between what is right and what is wrong and then acting upon it. One way to think about this from a philosophical perspective is to use deontology, which emphasizes causes and effects through rules and duties, not just as amorphous laws set down for no reason, but for sound and practical reasons so that people can live together. Thus, the principles of virtue theory take the most admirable characteristics in humans and focuses them on ways to get along with others,…

Sources used in this document:
REFERENCES

Virtue Ethics. (March 2012). Stanford Encyclopedia of Philosophy. Retrieved from: http://plato.stanford.edu/entries/ethics-virtue/

Aristotle. (2007). Nicomachean Ethics. New York: NuVision.

Flikschuh, K. (2000). Kant and Modern Political Philosophy. Cambridge: Cambridge University Press.

Flood, M. (May 13, 2005). Judge Hands Out Prison Time in Enron Barge Scam. Chon.com. From the Houston Chronicle. Retrieved from: http://www.chron.com/business/enron / article/Judge-hands-out-prison-time-in-Enron-barge-scam-1942569.php
Cite this Document:
Copy Bibliography Citation

Related Documents

Nicomachean Ethics Aristotle Said, "The Good for
Words: 911 Length: 3 Document Type: Essay

Nicomachean Ethics Aristotle said, "The good for man is an activity of the soul in accordance with virtue, or if there are more kinds of virtue than one, in accordance with the best and most perfect kind" (). According to Aristotle and his Nicomachean ethics, there are two kinds of virtue: intellectual and moral. Intellectual virtues are learned by instruction and moral virtues are learned by practice. According to his theory,

Nicomachean Ethics
Words: 679 Length: 2 Document Type: Term Paper

Happiness in Aristotle's "Nicomachean Ethics" According to the definition of human happiness in Aristotle's "Nicomachean Ethics" the goal of human life ought to be the seeking of happiness, when pursuing all things. This may be contrasted with merely living for the sake of momentary bodily, social, or even personally gratifying pleasure. True, pleasure is often mistaken for happiness. But unlike pleasure, happiness is a moral obligation, shared by all peoples, rather

Nicomachean Ethics, Aristotle Explains His Theory of
Words: 689 Length: 2 Document Type: Term Paper

Nicomachean Ethics, Aristotle explains his theory of virtue and how to become virtuous. The main premise of Aristotle's theory of virtue rests upon the ideal of the "highest good" (Nic. Ethics I 2). Aristotle defines this as happiness, or living well. After this, Aristotle goes on to determine what exactly it means to "live well." He begins this process by stating what does not constitute living well. At first

Aristotle's Nicomachean Ethics the Concept
Words: 2812 Length: 8 Document Type: Term Paper

If this was the case, and this transformation of reasoning did occur, then that person would be truly virtuous. There are many strengths to Aristotle's argument, as well. One of the main strengths is the discussion of the two kinds of virtue - the kind that comes from habit, and the kind that comes from learning. This would work to demonstrate why some people change so much as they grow

Aristotle's Nicomachean Ethics Is the
Words: 1196 Length: 4 Document Type: Research Proposal

Acting in accordance with virtuous principles is a key to attaining happiness. In Book Three of the Nicomachean Ethics, Aristotle explains the difference between voluntary and involuntary action as well as total passivity. In the first chapter of the book, the philosopher explains the importance of free will and taking action in determining ethical behavior. Aristotle concludes that the only truly ethical acts are those that are chosen by

Aristotle's Nicomachean Ethics Is One
Words: 2143 Length: 5 Document Type: Term Paper

These [bad effects of pleasure and pain] are the reason why people actually define the virtues as ways of being unaffected and undisturbed [by pleasures and pains]" (1104b21-25) It is not imperative to remain indifferent or unaffected by both pleasure and pain to be virtuous, it is only essential that we have the right feelings of pleasure and pain at the right time. Therefore, he goes on defining virtue as

Sign Up for Unlimited Study Help

Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.

Get Started Now