Ethical Framework to The Organization

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Question :

Topic -  Ethics Essay

NOTE: The lecturer has advised me the topic should be focused on:

The collapse of Enron Corporation in the USA was almost two decades ago, and even today, it remains the greatest corporate failure in American business history. From an ethics perspective, recognise the different ethical frameworks that can be applied in business decision-making today at the highest level and using examples from the case of Enron examine the importance of having a clear ethical framework on which good corporate decision-making should be based.


You are required to briefly analyse, in essay format (maximum 1500-word limit), the ethical issues in a complex, current business problem. Ethics are mainly based on moral decision-making and there is not always a correct answer. In the essay, you will examine the issue given from different viewpoints before deciding on the correct procedure. You will be required to justify your choice.

You are required to recognise the different stakeholders who will be affected by the decision to be made, the different decisions possible regardless of the ethical stance and then outline the decision that you consider the most appropriate and why.

5 Rubrics

Ethics Essay Apply independent ethical judgement and initiative in solving differing business problems creatively


Graduate certificate fail (8) 

Graduate certificate pass (8)

MBA fail (9)

 Graduate certificate exceeds (8)

MBA pass (9)

MBA exceeds (9)



Examine the elements of an ethical framework in a business problem-solving context

Failure to include important elements of relevant ethical framework/guidelines

Determine the relevant ethical frameworks/guidelines that impact on solving business problems

Briefly explain the relevant ethical framework/guidelines that impact on solving business problems creatively

Critically evaluate and comprehensively explains relevant ethical frameworks/guidelines that impact on solving business problems using initiative and creativity


Discuss ethical dilemmas in a business problem-solving context

Fails to evaluate the impact of various responses to identified ethical dilemmas

Discuss the impact of several responses to identified ethical dilemmas

Examine the impact of various responses to a range of ethical dilemmas

Evaluate the impact of several responses to a range of ethical dilemmas comprehensively using initiative and creativity


Apply ethical framework/theory in a business problem-solving context

Failure to apply an ethical framework/theory when choosing a response to ethical dilemmas

Use an ethical framework/theory to choose how to respond ethically in a business problem-solving situation

Use an ethical framework/theory comprehensively to choose how to respond to a range of ethical dilemmas

Briefly apply an ethical framework/theory with appropriate justification of choices made about how to respond to a range of ethical dilemmas using initiative and creativity

Answer :
Organization Selected : Enron Corporation


Business ethics are the moral principle used to drive the business entity the way they behave. Acting in an ethical way shows the difference between right and wrong and choosing the right path. This report is based on the case study of Enron's Complex financial where the organization has seen a good amount of downfall due to unethical activity in the organization. This essay highlights the different frameworks which can be applied in ethical decision-making. Also, the importance which used to be provided by the ethical framework to the organization with the help of looking at the example of Enron's Complex financial


Business ethics is the study in which business used to make different business policies and the practices in the organization by looking at the different controversial subject that is corporate governance, insider trading bribery, discrimination, corporate social responsibility, and fiduciary responsibilities (Bowie, 2017). In simple words the business ethics is the basic level of the trust which used to exist between the consumer and various forms of market participants with business.

There are many framework which has to be looked by every organization before making decision in the organization as Ethical behaviour of the company used to help the company in many ways. At the same time not following the ethical consideration also used to create the variety of the issue. This better can be understand with the help of the case study of Enron's Complex financial in which company was doing great in the initial stage of their incorporation . This is better with the data that the profit of the company has increased by 750%, But after that it was found that the organization not used to use the ethical framework in the organization. The biggest evidence for supporting the statement is the different activity such as financial statement were confusing, also misrepresent earning and modify (Enron's Corporation, 2018).

Some of the ethical framework which may had used by Enron's Complex financial are Virtue Ethics, it is the framework which used to prompt that the decision in the organization should be made by looking at the person character and moral virtue (Crane and, 2019). Generally, in this framework the leader in the organization will be perceiving on the basis of the choices they make. In simple words it explain that the leader in the organization has to take the honesty, trustworthiness and discipline into consideration at the same time also has to used the business skill to make the decision that is critical thinking, communication skill and financial competence. This will help the company in building good relationship with the stakeholder, employee customer and the community (Ferrell and Fraedrich, 2015). This framework was not applied in the Enron's complex financial as the biggest reason of their downfall was confusing statement to the shareholder and analysts.

Another framework of ethical decision making is the consequentialist theory, in this framework ethical course work are made by looking at the end result Generally, organization used to look at the end result before making the decision in the organization. Leader in the organization after choosing the desired outcome used to reveal the action toward the end. The end goal of this type of the framework is to produce a the plan which can be accepted by the all or produce the most effective result. The reason of choosing this sort of the framework is that this theory used to provide the transparency at all the level of the reflective goal. This framework used to work well at the time of influencing the decision making of more larger number of the people in the organization. There are many consequence which are also linked with this framework such as it get difficult for the organization to see the unforeseen circumstances of the future a in present and develop the different action plan (Werhane, 2019). This eventually creates the situation which used to bring more harm than the goods for the organization. In the case of the Enron's complex financial the framework was missing as the action or the decision which were taken in the organization were to overcome or overlook the current risk as compare to that of the end result (Rhodes, 2016). For example: Enron's complex financial has pass on the special purpose entities to fulfil the special need or to manage the risk associated with the specific assets in the organization this is against the ethical consideration for any organization.

Another framework which can be applied in the organization is Identify Consider Act Reflect, It is the four step framework which was designed to address the different ethical issue which was line up with day to day challenges. The first step of the identify all the scenario in the organization in such a way that ethical standpoint as a means of finding a means of finding the best course of action. Generally at this step of the ethical decision making leader used to answer the set of the question such as which is ethical principle?, parties affected by this decision?. Next step is the step where the leader has to assess the decision making path which has been chosen by the leader. So that the leader in the organization can easily brainstorm the different alternative solution in the organization (Barry, 2016). In third step of the framework entail action are being taken by the leader by the way of following the action which has been decided on or of. Finally, at the fourth step of the framework the leader in the organization used to reflect on the overall outcome of their action.

Not only the following framework need to be consider by the organization but also has to make sure that the organization used to take the variety of the factor into consideration. The factors are business should have fair dealing with every one this was not the case in Enron's complex financial as they were misrepresenting the financial data. Ethics should be fixed for every one in the organization. Violence of ethics should be detected as soon as possible and measure should be taken. Business ethics should be based on the broad guidelines.

Following Framework does not only mean that the organization is compiling the business with different social responsibility in taking the decision in the organization, but there are many other importance also which are brought to the organization due to the proper following of the different framework in the organization. Such as it helps the business in improving the human power in the organization as employee are happy in the organization as the company is understanding there need and requirement in the organization. Also the ethical framework used the company in improving the public creditability in the market (Davies, 2016). As people or the consumer always love to purchase the product of the company is honest in their working ans also used to help the society to grow in the long run of the business, this is a very good sign toward the goodwill of the company. On the basis of the same the organization used to take the decision regarding the offering of the company in the market.

Another important which is brought by the ethical framework is that the company is able to build a good employer brand in the market which eventually help the company in getting the good employee with the good skill set in the market (Robertson, 2017). As all the employee in the market always love to go to the organization which used to care about them and there need in the market. As a result on the basis of the same the organization used to take the variety of the decision related to the recruitment and the Human resource management in the organization (Wallace and Sheldon, 2015). Increases the profitability it is the another benefit which is brought by the ethical framework in the organization as ethical company used to see the better goodwill in the market and also having the better human resources in the organization. It eventually result in increasing the number of the customer for the organization. This eventually help the company in increasing the profitability for the organization in the long run of the business.


After going through the above report it has been summarized that three types of ethical frameworks can be used by the business in making ethical decisions in the organization. Framework are Virtue Ethics, consequentialist theory and Identify Consider Act Reflect Framework. After that, the report goes on to summarized that there are many other benefit which are seen by the organization by applying the frame work in the organization other than compiling with the social responsibility of the business. In the end the report summarized that the ethical consideration is one of the need of all the organization in today's market.

Also read:- Fund Accessing and Investment Appraisal Techniques

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