Slavery in Cocoa Farms in Ivory Coast, 2001
Systemic, corporate and individual ethical issues
The case raises a number of ethical issues that resonate around the systems, the corporates and the individuals as stakeholders in the blooming cocoa industry. It is noteworthy that Ivory Coast is the world’s leading importer of cocoa hence the ethical issues have assumed an international character. The stakeholders affected by these ethical issues include the Ivorian government and the cocoa farmers, American and European chocolate manufacturers and the ordinary chocolate consumer who does not know the origin of the products.
The systemic ethical issues resonate around the Ivory Coast economy and political and legal structures. One notes the overreliance of Ivory Coast on cocoa to the extent that it sacrifices the rights of the children and assumes a reluctant approach in tackling child slavery and attendant inhumane treatment of the child labourers in the farms. The character, content and form of the legislation on child labour and general human rights leaves a lot of tongues wagging on the commitment of the Ivorian system to an ethical practise.
The corporate ethical issues resonate around the chocolate manufacturers who form the largest consumers of the products. One expects that at least the manufacturers would pursue an active role in the solution of child labour and exploitation through a number of mechanisms which includes imposing boycotts of products. However, the manufacturers have been blinded in their pursuit of profits leaving analysts wondering on their commitment to corporate ethics.
Finally, the case presents individual ethical issues. These mainly resonate around the perpetrators of the crime of slavery and inhuman treatment and the final consumers of the chocolate products. From the inhumane treatment and conditions subjected to the children by the cocoa farmers, one questions their commitment and subscription to ethics and human rights. In addition, the final consumer upon being enlightened of the process of production of chocolate through slave labour needs to examine the ethical repercussions of consuming the products.
Enron’s fall
Systemic, corporate and individual ethical issues
The Enron fraud easily passes out as the worst accounting fraud. It has precipitated the active insistence for ethics seen in the Sarbanes Oxley Act 2002. This case presents a number of ethical issues resonating around the system, the corporate and individuals. The paper shall briefly examine each phase.
Systemic ethical issues are seen in the roles played by the American Enterprise system and the failure of the Securities and Exchanges Commission to avert the crisis. As is evident, the Enron scandal was partly motivated by the need to compete and succeed in the highly volatile energy industry. In addition, the blame may be placed on the Securities and Exchanges Commission for their unnecessary extension of trust to Enron. As a regulator in a competitive system, it is the expectation that work is approached with some level of professional skepticism which missed in the Securities and Exchanges Commission. This raises ethical concerns over its role in the prevention of fraud and illegalities in the business environment.
The corporate ethical issues are seen in the nature and conduct of Enron and Arthur Anderson. For starters, the need for success pushes Enron into engaging creative and fraudulent accounting to discern enormous losses so as to shore up its share values. In addition, Arthur Anderson expert personnel played a major role in the creation of the special third party transactions that would help in hiding the losses. Serious ethical issues arise in the conduct of Enron and Arthur Anderson at the point the fraud is discovered. The corporate bodies despite the knowledge of risks and potential bankruptcy still lied to its employees and investors on the robust and stable state of Enron. In addition, the top directors began to offload their shares in the market. At the same time, Arthur Anderson participates in the obstruction of justice by its attempt to destroy the documents of transactions through shredding.
The individual ethical issues relate to the conduct of a number of key persons in the scandal. The brains behind the scandal, Andrew Fastow not only facilitated the creative accounting but also attempted to deceive the employees and investors and in addition tried to sack the whistle blower Sherron Watkins. These activities occur with the blessing of the individual directors who upon realizing their mistakes offload their shares in the market. In addition, the persons involved in the scandal in their own individual capacities attempted to deceive and obstruct the course of justice. These include the Arthur Anderson personnel, Mr Skilling who later resigned and the entire accounting department of Enron.
Definition of concepts
Ethics
This refers to the conduct of right over wrong based on the moral fabric of a society. It derives from the accepted conduct and behaviour in the society.
Pre conventional morality
This refers to the behaviour, conduct and reasoning that is motivated by the consequential gains and losses. In that perspective, one examines the positives and negatives attendant to an action or conduct.
Conventional morality
This refers to the reasoning, behavior and conduct of a person that is influenced by the societal expectations and set standards. In this approach, the person seeks to be in consonance with what is the current societal practise and standard.
Autonomous morality
This refers to the free will and self-determination in relation to personal conception and adoption of moral law and ethics. It advances the fact that morality is self-imposed on the individual and devoid of external pressures.
Moral reasoning
This refers to the individual or personal distinction of what is right and wrong through the application of a logic flow and analysis. In that vein, the person arrives at a decision consequent of a number of factors that he can identify and use to justify his point of view.
Consistency requirement
It refers to the continuous and unchanging behavior, standards and line of thought that is logically applied in society. In relation to morality, the consistency requirement relates to the illustration and demonstration of a line of thought and reasoning that does not deviate or change overtime and would be, therefore, predictable.
Ethical relativism
This refers to the appreciation of diverse and different conceptions and foundations on ethics which lead to diverse opinion on what ethics entails. Ethical relativism is, therefore, the understanding of the ethical viewpoints of an individual consequent of his tradition or culture and beliefs.
Moral responsibility
This refers to the obligations one assumes as a consequence of his actions, conduct or behaviour. In that regard, moral responsibility envisages the repercussions that one assumes consequent of the outcome of his action in society. It could be a positive or a negative responsibility.
References
Beyer, J., & Nino, D. (2012). Ethics and Cultures in International Business. Journal of Management Inquiry, 34-35.
Hope, T. (2007). Acts and omissions revisited. Journal of Medical Ethics, 227-228.
Raghavan, S. (2001, June 25). A taste of slavery: Hand picked slave traders prey on children. McClatchy Newspapers. Retrieved from http://www.mcclatchydc.com/2001/06/25/100458/a-taste-of-slavery-hand-picked.html#.UZC5qaJTCEA
Velasquesz , M. (2006). Enron's fall. In M. Velasquez, Business Ethics, Concepts and Cases (pp. 53-55). New York: Pearson: Prentice Hall.
