Enron Corporation was one of the world’s top electricity corporations that underwent a financial indignity, which involved Enron and its bookkeeping company. The scandal comprised of the detection of unbalanced accounting techniques, which occurred through the 1990s. This resulted in Enron filing for insolvency in December of 2001 (Thomas, 2002).
According to this example, Enron, it is difficult, if not impossible for the decision-making process within a large corporation can overcome this fact of human selfishness. This is because this drive is naturally in people, and many choose this to be their drive. It is almost impossible to learn everything about one’s employees, hence the decision-making process within a large corporation is prone to human selfishness.
The solution in this scenario would be placing the company under receivership, thus overhauling the whole human resource facet of the business and recruiting new and competent individuals.
Psychological egoism is by far an undeniable fact, human beings do naturally seek what is best for themselves through happiness and avoid pain, and it is the natural instinct of self-preservation. This is the basis for my interaction with individuals in the corporate world.
Psychological egoism forms the foundation and cause of auditing. Auditing is crucial in ensuring individuals, in their drive for achieving the best, they have not pilfered or mismanaged a company’s resources.
The economic recession is caused when the cost of living goes too high and the growth rate of a country is slower than the inflation rates. These increases in prices of commodities is caused by producers or suppliers requiring more compensation for their commodities or services rendered. Some seek to achieve this by hoarding the commodities in warehouses and creating a temporary shortage forcing prices to go up. Naturally, all producers are profit-oriented and would even cause economic recessions to make super-normal profits.
Personally, I believe if people are community oriented, society functions better. I agree with Karl Marx’s ideology.
Dienhart, J. W., Moberg, D. J., & Duska, R. F. (2001). The next phase of business ethics: Integrating psychology and ethics. Amsterdam: JAI.
Shaw, W. H. (1999). Business ethics. Belmont, CA: Wadsworth Pub.