Why has it become necessary to ask moral (ethical) questions in the Essay

Why has it become necessary to ask moral (ethical) questions in the present global economic conditions - Essay Example This is attributable to the fact that when making business decisions, managers have to take into account the views and beliefs on the working of the world and the social consequences of development, with particular significance in developing countries. Companies are not merely faced with issues about the morality of their actions and practices but also have to consider the impact of the actions on the reputation, legal exposures and competition amongst other aspects (Feigenbaum). Businesses are faced with moral quandaries from various levels of organizational decisions. The wage and labour conditions are critical factors in the economic growth of the company. Businesses that have maintained high standards of worker conditions and have paid the workers well are met with challenges in maintaining the same standards when they expand. For the long-term profitability of business ventures and continuing profitability, managers need to consider the impact of the business on the local workfo rce. Ethical issues may arise on the grounds of discrimination, rights of the workers and their tasks. Businesses are also starting to give more importance to the effects of their activities on the environment in particular reference to the pace and effects of economic globalization (Panayotou 2000). As public awareness rises and there is increasing pressure for social corporate responsibility, businesses who fail to comply with the standards for environmental sustainability are meeting grave consequences in national and international media. Business decisions also have political implications, with differing opinions amongst theorists on the effects of business on the political and economic framework of the country (Feigenbaum). This paper looks into the moral issues of a corporation and seeks to analyse them using moral frameworks including the social contract model and deontology. The Moral Problem: Enron Ethics is defined as the art of guiding the actions of men towards the produ ction of the maximum degree of happiness (Bentham 1823). People who run the business or an organization are responsible for conducting the business in a way that is yields the maximum benefits to not only the company but also the employees and the stakeholders. The ethical practices of Enron became a high-profile ethical scandal because the executives at the company did not give any regard to the interests of the employees and the stakeholders. The unethical practices of the executives of the company led to the company going bankrupt, with all of the shareholders losing their money and the employees being deprived of their jobs. Kenneth Lay, former Enron CEO, and Jeffery Skilling were involved in unethical activities that led to the fall of the entire company. The Executives were involved in manipulating the financial statements of the company (Collins 2006). Amongst other ethical issues, one issue also was whether it was ethical of the women, who took the case to the media, to whis tleblow on the Executives (Kinicki & Kreitner 2009). The Enron crisis gave rise to the â€Å"infallibility of the capitalistic economic system† (Conrad 2010). Analysing the Moral Problem According to a business ethicist, Manuel Velasquez, the reasons for ethical shortcomings of Enron can largely grouped into personal, organizational and systemic causes. Personal causes tend to explain the intent behind the actions that the executives took. The executives appeared greedy and interested in increasing their personal wealth. They did not give any consideration to the ethical implications of their actions and their actions represented a lack of compassion to the employees and the stakeholders (Santa Clara University 2010). When analysing their actions from a moral