Major Ethical Issues In Enron, Aristotle's Virtue Ethics, Kellogg's CSR Essay, And Fair Trade Perspectives.

1. In your own words identify and briefly describe two major ethical issues from the article titled 'Enron Ethics (Or: Culture Matters more than Codes) (Sims and Brinkmann, 2003), and indicating why these issues are 'major' in your eyes.

2. Aristotle's Virtue Ethics: Watch the following YouTube video and answer the following questions 

httodiwww.voutube.com/watch?)nruPdUxkqqoa) How might we enact and develop virtuous traits? How does this theory compare to consequentialist and non-consequemialist theories?

3. In its CSR statement the food manufacturer Kellogg's states the following: Kellogg Company has a rich history of corporate social responsibility, a history that has grown and evolved to meet the complexities of today's business world and the challenges of a global society. Our founder, W.K. Kellogg, sought to 'invest my money in people'. That legacy continues to guide our company and our people. Social responsibility is a way of life at Kellogg. It means investing in and enriching our communities. It means encouraging employee volunteerism. But it means much more. Our commitment to being a good corporate citizen also includes: • Protecting our environment. 

• Selling nutritious products and advocating healthy lifestyles.
• Acting with integrity and adhering to the highest ethical standards.
• Promoting diversity In our work force and partnering with diverse suppliers.
• Ensuring a safe, healthy workplace. (http://w),wr.kelloggcompany.comisocialaspx?id56)

In 2001, the Food Commission, a British campaign group, tested 18 breakfast bars and found that they all had higher levels of sugar than nutritionists recommend for a healthy breakfast and 10 had higher fat levels. Among one of the worst tested was Kellogg's Coco Pops bar (BBC News, 23 October 2001, news.bbc.co.uk/2/hi/health/1613141.stm). Australian consumer magazine Choke reports that Kellogg's ECM bars should not be recommended as a regular lunch-box food since they have little dietary fibre and contain a harmful level of saturated fat

(http://www.choice.com.au/media-and-newskonsumer-nevesinews/childrens1620snack%20bars%2Ounhealthy.aspx). 

Do you think that Kellogg's CM statement is sincere, or is the company merely trying to convince stakeholders that it is o socially responsible company? Assess Kellogg's CM statement using Kantlon theory.

 
4. Fair trade can sometimes be grounded in the assumption that it helps to address slave labour and give fair returns to farmers. What other perspectives on fair trade could be considered? Do corporations have a responsibility to the global community? https://www.youtube.com/watch?v=9mgPEPBHAss 

Conflicts of Interest and Poor Leadership in Enron

At the inception of their work, Sims and Brinkman argue that when people hear about “Enron,” the majority of them think of the big issue of corruption on a large measure- an organization where the climax of ethical problems and irresponsibility of executives took root. This company, according to the writers, was widely used by various individuals and associations in the 21^st century as a reference while addressing the two principal issues of ethics and corporate social responsibility (CSR) (Sims & Brinkmann, 2003). Since its foundation in 1985, Enron is reported to have always initiated treaties with other companies in the form of partnerships which as the authors say could be an essay and efficient approach to raising money.

Throughout the discourse in this article, it is evident that Enron was built on a foundation of deceit and the organization always employed dubious or underhand methods to amass wealth at the expense of their stakeholders. Conflicts of interests and poor leadership at Enron are two major ethical issues which caught my attention while reading through this article. These two subjects, conflicts or interests, and poor leadership are the essential or critical success factors that any typical company should ensure are properly aligned, and that is why they are major in my eyes.    

Even though the conglomerates were categorized as partnerships according to the rules of the Financial Accounting Standards Board (FASB), executives at Enron apparently had close and intimate connections with them. According to the rule of FASB, partnerships could not be regarded as subsidiaries provided that 3% of the shareholders claim originated from external investors and they were managed autonomously of their guarantors. Enron Company created ties that appeared lawfully like partnerships, despite the fact that they were subsidiaries. A thorough scrutiny to the so-called partnerships could reveal that the external investments originated from other corporations owned by Enron such as SE Thunderbird LLC. This underhand practice gave rise to the question of conflicts of interests. Executives of the organization like Andrew Fastow and Michael Kopper employed what the writers call a culture of cleverness to maintain Enron’s counterfeit frontage of success. Sometimes they could bend the FASB rules for their personal advantage and the good of the company (Sims & Brinkmann, 2003).

Apart from conflicts of interests, ethical boundaries at Enron were eroded by nature of corporate leadership which took place in this firm (Sims & Brinkmann, 2003). Top and middle managers encouraged unbecoming vices such as rule-breaking and responsibility avoidance among their subordinates who as the authors report, followed suit. As leaders, they set bad examples to their subjects by focusing only what mattered to the company and letting go what the outside majority perceived as just and correct course of action. During this time, they significantly influenced the corporate culture of Enron by incentivizing indecent cultural norms and behaviors.     

How to Enact and Develop Virtues in Aristotle's Philosophy

2. Virtues are defined as certain qualities or characteristics which individuals attribute their thoughts, actions, and energy tones such as feelings and emotions (ProfessorZaldivar, 2012). These qualities exemplify everything deemed to be “moral goodness.” One positive aspect of virtues is that they offer guidelines for a code of conduct at times when an individual is unaware of his or her intuition or instincts.  Virtues lead to appropriate personal behaviors such as tolerance, empathy, discipline, compassion, patience, kindness, and generosity. Owing to the merits associated with attributes; therefore it is important for people to learn how to enact and develop them in their day to day lives.

Archetypal field-work which comprises of self-talk, directed imagination, the principle of "as if," and energy toning, is one of the techniques individuals can employ while dealing with virtues. They can self-talk themselves, and in this case, they can explore their own needs. Besides, they we can envisage ourselves enacting a certain virtue that is directed imagination technique. Energy toning is whereby one can create the energy tones which resemble a particular virtue he or she is enacting, for instance, while enacting generosity, they generate friendliness. The principle of "as if" is applicable when an individual is acting as if they possess a virtue they are exploring (Annas, Narva?ez, & Snow, 2016).  

Moreover, we can allow instincts or Intuition to direct us while generating thoughts, energy tones, actions, or even images. While adhering to our intuition, one will realize that we act in particular manners which could be deemed "virtuous." However, in this case, the generated virtue is only a peripheral side-effect of our acts instead of our stimulating or motivating objective or force (Jungers & Gregoire, 2013).   

The theory of virtues as extended by various writers differs slightly with the consequentialist and non-consequentialist schools of thought.  The theory of consequentialist judges the wrongness or the rightness of an individual’s act in regard to the results of the action.  On the other hand, the non-consequentialist line of thought judges the wrongness or appropriateness of a person’s action based on the intrinsic properties to the act, and not its associated repercussions (Christen, 2014).   

3. According to the test conducted by the Food Commission, a British campaign Association as well as BBC News, it is clear that Kellogg's CSR statement was insincere. It was just meant to lure the community members and other stakeholders that the company was concerned with their social welfare while what it did practically was the reverse. It is not true that the corporation was working towards the safety of their customers as claimed in the CSR statement; instead, they are producing substantial foodstuffs causing great danger to the health of the consumers. For instance, the test conducted by the Food Commission proves that the breakfast bars provided by this foods manufacturer have high sugar contents. Therefore, everything contained in the company's CSR statement is treachery and covers the dissipations stomached within the corporation.   

Kellogg's Insincere CSR Statement Using Kantian Theory

Immanuel Kant, a Germany philosopher (1724-1804) extended ethics theory whereby he argued that certain forms of actions such as lying, murder, and theft were absolutely forbidden, even in instances where they could bring about more satisfaction than the alternatives (Knappe, 2004). Kant’s school of thought is a splendid example of deontological ethical theory and in regard to his arguments, the rightness or the wrongness of an action does not rely on their associated results rather on whether they fulfill their duty.  In our case scenario, it is apparent that the act of Kellogg Company producing foodstuffs with saturated levels of fat and sugar could bring happiness to some people yet the highly concentrated products were not recommended by nutritionists since they could gradually lead to diseases such as obesity and diabetes.   ,

4. Fair trade can be described as a social movement whose primary objective is to assist producers in third world nations or developing countries in achieving better commercial environment and promote sustainable agri-business (Marcovitz, 2011). Basically, fair trade helps in addressing the issue of slave labor and as such provides adequate returns to farmers. However, fair trade can be looked from other various perspectives apart from this apparent consideration.

As hinted above fair-trade movement aims at promoting significant equity or fair play in the global trading conglomerates through transparency, respect, and dialogue. It incentivizes sustainable growth and development by providing better commercial environments and safeguarding the rights of, downgraded manufacturers, and employees in the developing nations. Fair trade is founded on three central beliefs; first manufacturers possess the power to demonstrate unity with customers. Secondly, the international trading norms that exist contemporary encourage the fair and equal distribution of property amongst countries. Finally, purchasing goods and services from third-world nations at reasonable prices is a more efficient approach of endorsing sustainable development than customary charity and aid (Bowes, 2011).    

From the above perspectives of fair trade among nations in the global commercial arena, it is evident that companies have a responsibility to the international community. They are left with the obligation to ensure all perspectives of this movement are adhered and followed to the latter by all and sundry with impartiality and without blemish.

Annas, J., Narva?ez, D., & Snow, N. E. (2016). Developing the virtues: integrating perspectives ( Print book ed.). New York NY: Oxford University Press.

Bowes, J. (2011). The fair trade revolution. New York: Pluto.

Christen, M. (2014). Empirically informed ethics: morality between facts and norms. Cham: Springer.

Jungers, C. M., & Gregoire, J. (2013). Counseling ethics: philosophical and professional foundations. Danvers, MA: Springer Pub. Co.,

Knappe, U. (2004). Theory and practice in Kant and Kierkegaard. New York: Walter de Gruyter.

Marcovitz, H. (2011). Fair trade. Edina, Minn.: ABDO Pub.

ProfessorZaldivar (Director). (2012). Aristotle's Virtue Ethics [Motion Picture].

Sims, R. R., & Brinkmann, J. (2003, July ). Enron Ethics (Or: Culture Matters More than Codes). Journal of business ethics, 45, 243–256.