Paula rieker the enron vice president responsible for

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2004. Paula Rieker, the Enron vice president responsible for investor relations, pleaded guilty to insider trading in May 2004 (CNN Library, 2016). In assessing consequences, there are three different approaches to making decisions regarding moral conduct: ethical egoism, utilitarianism, and altruism (Northouse, 2016, p. 334). Ethical egoism states that people should act so as to create the greatest good for themselves. A leader with this orientation would take a job or career that she or he selfishly enjoys (Avolio & Locke, 2002). Many of the Enron executives made decisions to achieve their goal of maximizing profits. The executives had a very high concern for their self-interests but a very low concern for the interest of others.
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On the other hand, Sherron Watkins, the Vice President of Corporate Development, alerted the Enron CEO of accounting irregularities in financial reports in August 2001. She is the whistleblower responsible for bringing the corruption at Enron to light. She reported the fraud to government authorities despite the fact that she knew she was risking her career at the sixth-largest energy company in the world. I would argue that her actions were altruistic. Altruism is an approach that suggest that actions are moral if the their primary purpose is to promote the best interests of others. From this perspective, a leader may be called on to act in the interests of others, even when it runs contrary to his or her own self-interests (Northouse, 2016, p. 335). Sherron Watkins displayed a low concern for her self-interests and a high concern for the interests of others by jeopardizing her job as the Vice President of Corporate Development in order to protect the interests of the lower-level employees at Enron. In conclusion, leadership is a process of influencing others. Leadership involves values, including showing respect for followers, being fair to others, and building community. Leadership is not a process that can be demonstrated without showing our values. Therefore, when we influence, we have an effect on others, meaning we need to pay attention to our values. Sherron Watkins demonstrated how this moral dimension distinguishes ethical leadership from other types of influence, like those of the other Enron executives that knowingly decided to compromise their morals and values in favor of achieving the greatest good for themselves. The Enron scandal serves as an excellent case study for why their is a high demand for moral leadership in our society today. REFERENCES Avolio, B.J., & Locke, E.E. (2002) Contrasting different philosophies of leader motivation: Altruism versus egoism. Leadership Quarterly . CNN Library (2016). Enron Fast Facts. Northouse, P. G. (2016). Leadership: Theory and practice. Thousand Oaks, CA: Sage.
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  • Summer '18
  • E. GANGA
  • Enron Corporation, MASTERS BUSINESS ADMIN

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