Student Solution

-->

"Education is the most powerful weapon which you can use to change the world”
– Nelson Mandela

1 University

1 Course

1 Subject

Lesson 9 Forum

Lesson 9 Forum

Q This discussion is concerned with the costs of business ethics failures. Question: a) Identify a firm that has engaged in ethical wrongdoing (e.g., child labor, corruption, embezzlement, discrimination, voluntary pollution, bribery, price gouging, and so on). b) Briefly describe two costs that the firm has incurred as a result of its ethical wrongdoing. You may select any two costs from the list presented in Chapter 9 (p. 271). As a reminder, these costs may include visible costs (e.g., fines, penalties, lower stock price); internal administrative costs (e.g., legals costs, corrective action costs), and intangible costs (e.g., customer defections, damaged firm reputation). To get the maximum points for this discussion, you must make (A) make an initial post to answer the question above and (B) reply to at least one other post. Grading rubric for both posts: Answers to this assignment are subjective. Therefore, I am only grading your posts based on the following objective aspects: • Substantive Thoughts Expressed: Your thoughts and positions should be clearly explained. • Length: Initial posts should be at least 5 sentences long. Response posts should be at least 3 sentences long. • Completeness: Your initial post should cover all parts of the discussion question(s).

View Related Questions

Solution Preview

Enron Corporation is a firm which has engaged in ethical wrongdoing of providing fake hopes to the interested and existing investors and stakeholders about the investments in the organization being profitable. This is because there had been inflated profits shown to be the actual profits to the investors and the general public (Petra & Spieler, 2020). There had been losses incurred by Enron but the organization proved that there had only been profits by providing fake accounts of profits in their accounting documents (Petra & Spieler, 2020). Enron had to face humiliation and criticism by eventually losing its visible cost of stock price and intangible cost of good reputation among the general public, investors, the government of area of operations and the social media personnel (Petra & Spieler, 2020).