Paper Summary:

Using Immanuel Kant's 'Groundwork of the Metaphysics of Morals' as criterion, this paper discusses the ethical issues surrounding the deceitful practices that eventually led to the exposure and downfall of Enron. The writer describes first how Enron used investors as a means to an end and then explains why, according to Kant, this constitutes an unethical action. Some possible alternative scenarios that could have protected the investors in this case as well as any future cases of corporate deceit are discussed, but the paper concludes that deceit will endure as long there are those who are willing to put their trust in others.

From the Paper:

"In the case of the now defunct energy giant Enron Corp (Cases in Business Ethics, 2006, p.10), the management took advantage of the trust of investors by pocketing hundreds of millions of dollars while deliberately covering up and lying about the company's imminent financial collapse. Rather than name specific offenders, the word management is used in this discussion since it took the collusion of numerous individuals to hide Enron's true performance from investors. The ethical problem in this case is not the risks the management of Enron took or the loss of investor money. Investment risk and bankruptcy are known realities to investors and are not unethical in and of themselves. The breach of ethics in this case occurs when management deceives the trust of shareholders as a means to achieve personal profit."

Sample of Sources Used:

• Bong, K., & Lanfranconi, C. Enron Corp. In D. Sharp (Ed.), Cases in Business Ethics (pp. 10-24). California: Thousand Oaks. (2003).
• Black, Samuel. Simon Fraser University (2006).
• Immanuel Kant, Groundwork of the Metaphysic of Morals, translated by H.J. Paton. New York: Harper & Row. (1964).

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