Utilitarianism and Enron

Term Paper # 101371

Business > Companies
Ethics
Philosophy > Ethics

This paper explains the theory of utilitarianism in relation to the Valhalla oil trading scandal at Enron.

734 words () | 2 sources | MLA | 2008 United States

Paper Summary:

The paper provides an overview of the utilitarian moral theory and how it is applicable to the Valhalla oil trading scandal at Enron. The paper shows how this theory highlights important components of Enron's interactions with its environment and how Kenneth Lay dealt with ethical issues. The paper explains how utilitarianism allows unethical actions so long as these actions give rise to sufficient benefits and how the Valhalla oil trading scandal in Enron is an example of this.

From the Paper:

"The utilitarian moral theory or the 'greatest happiness principle' according to notes from Russell Marcus is based on the idea that the moral measure of an action is measured by the addition to total utility. Specifically, the morally correct or right act produces the greatest utility/satisfaction/action for the most individuals within a society. Marcus's class notes identify the three clauses of the Utilitarian Moral Theory as 1) consequentialism; where acts are judged by their outcomes. 2) Hedonism; where outcomes are evaluated by the total amount of happiness/utility they derive for the individual. 3) Equalitarianism; where each individual is accounted for as one entity, that is, without just cause no one is worth more than another (Marcus)."

Sample of Sources Used:

Eichenwald, Kurt. Conspiracy of Fools: A True Story. New York: Broadway Books, 2005.
Marcus, Russell. "Lecture Notes: Philosophy 104". Fall 2006. Queens College. 18 Dec. 2006 <http://www.thatmarcusfamily.org/philosophy/Business_Ethics/BEHome.htm>.