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...
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,
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 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
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
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
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
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