In the year 2001, the Enron Corporation, an American energy company, went bankruptcy due to lack of proper and misguided information. This contributed to the firm failure and largest bankruptcy recognized in American history by the year 2002. This affected stock market and hence stakeholders and employees received limited returns.
The Stuart Mill’s theory of Utilitarianism explains the doctrine of having right actions if they are meant and useful and benefit the majority (Sellars, 2016). I believe Mill’s theory and philosophy. Regarding the Enron 2002 scandal, the theory relates to the actions taken by the management of Enron Corporation leading to bankruptcy state. According to utilitarianism theory, the action is considered as right if it promotes happiness especially to the greatest number of people and being guided by the principle of conducts (Sellars, 2016). I would encourage Enron Corporation management and advisers actions that considered the happiness of employees and stakeholders. I think this would ensure a positive response to the organization performance and stock market.
The Empiricism under the Kant’s theory indicates that all knowledge depended on and derived from sense-experience. In relating to the Enron Corporation state during the year 2002 after experiencing huge bankruptcy, I do not believe in the Kant’s theory. The management Enron Corporation had knowledge in detecting the state of the company and taking appropriate measures to control from the impacts (Sellars, 2016). I, therefore, consider that the management had enough experience but unexpected occurrence due to lack of proper audit of the company. I think having the required knowledge and experience it is important for managers to have considered the market trend, organization performance and relating to internal records. This would have helped in assessing where the corporation was heading in productivity.
Reference
Sellars, R. W. (1939). Positivism in contemporary philosophic thought. American Sociological Review, 4(1), 26-42.
