ETHICS APPLICATION ASSIGNMENT No. 3Case study: Enron scandalNAME: Liliana Pardo Mazzelli1. MORAL AGENT: Kenneth Lay and Jeffrey Skilling2. MORAL QUESTION: “Whether to commit security fraud”3. LISTS OF LIKELY CONSEQUENCES:a) If action is taken1. Kenneth Lay and Jeffrey Skilling could be caught committing fraud and end up in prison for many years.2. Kenneth Lay and Jeffrey Skilling could lose everything they have earned.3. Kenneth Lay and Jeffrey Skilling will not be able to spend much time with their families if they are sent to prison for fraud.4. Kenneth Lay and Jeffrey Skilling may destroy the image and reputation of Enron Company with their fraudulent activities.5. Kenneth Lay and Jeffrey Skilling could cause Enron stock prices to fall if the company is involved in fraud that creates a scandal.6. Kenneth Lay and Jeffrey Skilling could end up bankrupt if their company fails as a result of their fraud.7. Kenneth Lay and Jeffrey Skilling could receive sanctions for attempting to deceive shareholders and distort numbers.8. Kenneth Lay and Jeffrey Skilling could cause many Enron employees to lose the entire amount of their pension if their stock drops to zero due to the fraud.9. Kenneth Lay and Jeffrey Skilling could cause investors to lose millions of dollars if they commit fraud.b) If action is not taken1. Kenneth Lay and Jeffrey Skilling will be happy and living the “American Dream”.2. Kenneth Lay and Jeffrey Skilling will continue to have a thriving company.3. Kenneth Lay and Jeffrey Skilling will continue to acquire new shareholders and investors.4. Kenneth Lay and Jeffrey Skilling will be able to enjoy time with their families.5. Kenneth Lay and Jeffrey Skilling will have stable titles......middle of paper......ns, owners will have to follow the ethics books. By following the rules, company owners will benefit and so will the greatest number of people, including owners, investors, employees and everyone involved in the company.a) Theory: Situation ethicsb) Measurement: “Act responsibly and altruistically and selects the action that will produce (or is likely to produce) the beneficence of one's neighbor" altruistic way. This will benefit everyone and serve as an ethical model for other businesses to thrive without committing fraud. This action of not committing fraud will above all benefit the neighbor because he will be able to count on his investments, thanks to the honesty of the owners.