Business Ethics Essay

1475 Words May 3rd, 2015 6 Pages
Business ethics and deontology Adelphia Communications Company was a family business company and later incorporated by the founders’ sons. It was ranked sixth of the largest cable selling company in the U.S. Its revenue exceeded $ 2.9 billion annually with its offices located in 32 states having subscribers exceeding five million (Barlaup, 2009). However, in 2002 a financial analyst realized that some funds were missing in the books of the company leading to investigations. Later, the SEC announced that the Adelphia Company had fraudulently and systematically excluded billions of dollars of liabilities from its financial statements by removing the entries from its book. The founders’ family (Riga’s family) cooperated with the company’s …show more content…
Firstly, they were using the company’s assets for their own benefit without telling their investors. Additionally, they also exempted records from the financial books of the company and also lying to banks about the company’s financial position so as to get their personal loans by using the company as the collateral. Seriously speaking, this acts are for stealing and misusing the company’s assets. On the other hand, they lied to their creditors, and worst of all their investors that the company was experiencing an extraordinary growth rate thus misleading them. Deontological ethics is ethical theories that lay special prominence on the relationship between morality and duty of human actions. In deontological ethics, for an action to be considered morally it must be due to some characteristic it holds of the action itself and not because the outcome or product of the action is good. These ethics hold that at least some rights are morally essential regardless of their consequences for human welfare. To make the right moral choices, one has to understand what moral duties are and the correct rules that exist to regulate the duties. Therefore, when one follows their duties, they are behaving morally. However, when one simply follows the correct moral rules is often not sufficient; instead, one has to have the correct motivations. This allows a person to be considered moral though he or she has broken a moral rule,

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