Ethics-Question-1 - Aaron Beam and HealthSouth Fraud Case Study PDF

Preview

Summary

Aaron Beam and HealthSouth Fraud Case Study...

Description

1. Which of the “obstacles” to moral behavior do you see at work in Aaron Beam’s behavior and thinking? In Richard Scrushy’s?

There are many obstacles to moral behavior that we see on Aaron Beam and Richard Scrushy’s behavior and thinking. The first difficulty was that Beam saw it as a corporate concern rather than a legal one. Aaron Beam's rationalized his actions, he is reinterpreting his immoral actions as moral to avoid experiencing guilt. Beam’s behavior and way of thinking have been restrained by fear and pressure placed above his head that pushed him to make unethical activities. Scrushy and Beam both knew that the company had to appear profitable to satisfy investors and lenders. So, Beam was told to do whatever he could to make their financial statements look even better. Beam was pressured by the task because he believed that the company’s success and the good of all the employees lies in his hand. Therefore, he continued to manipulate their financial reports. Likewise, Beam was afraid that he might lose everything he worked for as well as all the sacrifices he has made even if he knew that his actions have violated several principles since his profession required him to practice being ethical, however, because of these obstacles, he choose to commit unethical activities. Scrushy, on the other hand, redirected the responsibility of their actions to other people without considering the consequences it holds as he allowed Beam to be accountable for the falsification of the information on their company’s reports. He was blinded by greed and pressure; he never thought of the reputation of his constituents and the company’s investors. He then placed them in such a situation where they were to blame for the fraudulence that occurred in their business. Truly, Scrushy’s morality and business ethics were overthrown by the greediness that let him neglect all the moral principles he must have taken into his heart....