ETHICS IN THE GLOBAL N

ENVIRONMENT
Business Trends
^Professor: M.B.A. Linda Medina
"THE SMARTEST GUYS IN THE RO O M ' CASE STUDY ^

TIMELINE
EXTERNAL ANALYSIS
DEBATE;

^Professor: M.B.A. Linda Medina

- An ethical analysis of the ENRON scandal and learning's from it:

I. Failure of the Market to Perform and Professional Dilemmas.

In reality, there is nothing wrong with markets failingto fulfill their task
of levelingthe playingfield between buyer and seller. Such market
failures are in fact how many organizations make their money—through
patents (temporary monopolies) and the use of expertise that is not
universally available (competitive advantage). Yet there are certain forms
of this type of market failure that are so egregious that they
unreasonably interfere with the rights of others and endanger the
credibility of all legitimate transactions.
 DEBATE;

^Professor: M,B,A, Linda Medina

- An ethical analysis of the ENRON scandal and learning's from it:

L The Neglect of Integrity Capacity by Managers*

What is legally permissible today, but morally questionable, may well

become legally proscribed tomorrow, \ntegrity capacity is the
capability for the repeated process alignment of moral awareness,
deliberation, character, and conduct that demonstrates balanced
' judgment, enhances ongoing moral development, and promotes
1 supportive systems for moral decision making. It is one key intangible
asset that acts as a catalyst for reputational capital and its erosion can
| jeopardize the survival and credibility of organizationsand markets .
 ^Professor: M.B.A. Linda Medina
- An ethical analysis of the ENRON scandal and learning's from it:

I. Process Integrity Capacity and Enron.

Process integrity capacity is the alignment of individual and collective

moral awareness, deliberation, character, and conduct on a sustained
basis so that reputational capital results. The need to address lapses in
process integrity capacity is manifest by the routine fragmentation of
managerial moral attention and behaviorthat arouses stakeholder
concern about the moral hypocrisy of management practices.
 DEBATE；

^Professor: M.B.A. Linda Medina

- An ethical analysis of the ENRON scandal and learning's from it:

I. Judgment Integrity Capacity and Enron.

r For business leaders and their firms, exhibitingjudgment integrity means

being held accountablefor achievinggood outcomes (results-oriented
teleological ethics), by following the right standards (rule-oriented
deontological ethics), while strengthening the motivation for excellence
(character-oriented virtue ethics), and buildingan ethically supportive
environmentwithin and outside the organization (context-oriented
system development ethics).
LEARNINGS FROM THE ENRON CASE
I /i r J 1 面 f\ ■ I 1 1^' I jr§ f *I r\ f rT ^ Ih
N
Enron will be the morality play of the new economy. It will teach executives and the
American public the most important ethics lessons of this decade:

Financial cleverness
Government regulations and
is no substitute for
a good corporate rules need to be updated for
the new economy, not
strategy.
relaxed and eliminated.

You make money in
the new economy
in the same ways
you make money in
the old economy -
by providing goods
or services that
have real value.
>
^rofessor: M .B A . Linda Medina
，一of corporate
yes who claim they Executives who are paid
best and the too much can think they
brightest, "the most are above the rules and
innovative," and who can be tempted to cut
present themselves as ethical comers to retain
superstars should be a "red their wealth and
flag" for investors, perquisites.
directors and the public.
TASK； n
Choose a company that has pushed the boundaries of what is
acceptable in pursuit of profit and innovation, attempting the
labour movement, environmental regulations, and corporate
social responsibility codes.

Analyze its time line & external factors.

Reach conclusions and suggestions.

THANK YOU FOR YOUR ATTENTION!!!
Professor: M.B.A. Linda Medina