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Ethical reasoning was the most intriguing concept this week. Nowadays, every company has an ethical responsibility which means meeting social expectations that are not translated into laws. Therefore, it is important that we acquire ethical reasoning by learning the fundamental roots of ethics. More specifically, we should learn to apply ethical principles to situations and distinguish ethics from other modes of thinking (Paul & Elder, 2006). Ethical reasoning should keep us away from committing mistakes as for instance, were committed by upper management of the “Big 5” Accounting firm Arthur Andersen. The firm was following wrong and illegal accounting practices, which led the company into legal troubles. Senior executives shredded relevant documents related to its audit of Enron. Furthermore, faulty presentations were created to attract earnings from the public and they did not consider their customers, stakeholders, employees, and community. Arthur Andersen did not have any business ethics, which “comprises the moral principles and standards that guide in the world business” (Bateman & Snell, 2009, p. 181). As a result of its poor management planning, Arthur Andersen was disbanded by the government in 2002.
Bateman, T.S. and Snell S. (2009). Management: leading and collaborating in the competitive world (8th ed.). New York, NY: McGraw-Hill/Irwin
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