How Can a Business Organization Be Made Moral?

¶ … Business Organization Be Made Moral?

Ethical and Moral Issues

This work will operate under the assumption of being a staff member under one of Enron's Senior Vice Presidents during 1997, a year characterized by the first major accounting misrepresentation and/or financial manipulation uncovered. The misrepresentation and/or manipulation was the use of "market-to-market" accounting with the objective being the adjustment of the value recorded in company purchases for the purpose of covering up a shortfall in the expected earning of the energy trading division of the colossal amount of $180 billion, quiet a shortfall as compared to the earliest mis-accounting. This makes a further assumption that the senior vice president or the higher-up one is under supervision of had perchance heard something of this transaction and its accompanying facade and then stated quiet clearly in a staff meeting called for the express purpose of addressing the fact that if:

"This sort of thing continues, we're dead. It will take awhile, but we'll lose everything we've worked so hard for around here for so long. We've got to change the way we do business."

The final objective of this work is to address the question being posed which is: "What can be suggested that will take this corporation in a new direction, indeed that would turn this corporation around and to present these plans and initiatives for change in a coherent formal recommendation for presentation to the Senior Vice President?"

I. Statistical Information/Overview

Statistics reveal that 257 public companies with $250 billion in assets involved filed bankruptcy increasing over the previous year of 176 companies and an accompanying $95 billion. Clearly integral in the failings of those companies runs a refrain of moral and ethical failings combined with a bad economy and financial risk taking that results in manipulations which though "smart at the time" did not pay off. The death knell of these companies was inclusive of loss in the area of competitive advantage described as "breakdowns in execution, and growth that is deemed 'too fast" to be sustainable. The market's shifting preferences contribute in a negative fashion but at the roots of any corporation's organization are "the hearts and souls of leaders who guide corporate responsibility." Indeed the moral and ethical position of an organization is that which serves as a guide leadership role and it is that which creates a culture of value within the organization. Margaret Mead is stated to have said that:

"Never doubt that a small group of committed people can change the world; indeed it is the only thing that ever has." How true this is and with what clarity Mead sees that it is not the volume or mass but the will of that which seeks change or if you will, the 'heart and soul of the organization."

This type of leader leads to a common-ground based upon trust, and respect. There are two major philosophical approaching in ethical dilemmas. First is the focus upon consequences of practical solutions as follows:

1. Step One:

Analyze the consequences

Who will be helped? Who will be harmed? What are the inherent benefits downfalls? What is the impact on the short-/long-run outcome?

2. Step Two:

Analyze the actions.

Consider all options from diverse perspectives; not thinking of the consequences and ask "Do any of the actions cross the line"? If a conflict between principles exist (honest, fairness, equality, respect of other's rights and dignities? (Consider the common good), Do any actions 'cross the line"? If a conflict in rights and principles of different cultures exist is one principle more important than the other? What solution is the least problematic?

3. Step Three:

Make a Decision

"Through analysis of "the consequences" and analysis of "the actions" a decision in strategy can be formulated.