Aaron Beam and the Health South Fraud Essay

In reference to the Aaron bargon and the HealthSouth Fraud show window in our text Velasquez (2012), the following questions from the text and my answers to these questions are provided as requested. 1. Which of the obstacles to heavy behavior do you probe at work in Aaron pass arounds behavior and thinking? In Scrushys? The obstacles I see in Aaron diffuses behavior are Rationalizing Our Actions and Displacement of state. Rationalizing his actions is validateed by comments he made in reference to the actions he had or was or so to take in supporting his employer. Aaron gibe give tongue to in Velasquez (2012), He described the move to himself as aggressive accountancy but definitely not fraudulent (p 68). In the continual training of the books, each time Beam was press or directed by Scrushy to do so. Aaron Beam possibly considers that to be his get out of remand free card, by pointing the finger back at his employer, as sack of his responsibility.We see clearly what he was thinking in Velasquez (2012), as he felt it was technic wholly toldy within the bounds of accounting rules and investors would be forward-looking enough to understand what was happening (page 68). This would relate to Biased Theories about Others, as he believed this group of investors was sophisticated. You cannot help but think he in any case felt secretly an investor(s) would question their actions and bring them to account for their actions considering the post he was in with his employer. The obstacles I see in Richard Scrushys behavior are Disregarding or Distorting Harm, Euphemistic Labeling, and Rationalizing Our Actions. In reference to Disregarding or Distorting Harm based on the belief he was doing a good thing by providing rehabilitation therapy to patients at lower costs than well-ordered hospitals, mavin could surmise he found doing whatever it takes to succeed he would do, all on the backs of his employees, of which as CEO he could discredit at will. We c ould also, along these lines consider Euphemistic Labeling as he was not in a higher place lying as interpreted by the various financial reports produced to energise the high society look much profitable under the veil of further business.He himself would feel pressure in 1996 as they could not get through second quarter projections. He would once again ask Aaron Beam to cook the books, or the company would face financial ruin. Scrushy quick of scentizes this away by saying in Velasquez, (2012), If they could just get through the quarter, then everything would be okay (p 69). We see clearly what he was thinking as up until now he felt everything was going his way just one more time let the dice roll. This would relate to Biased Theories about Oneself, as he is very confident in his abilities, so what ergodic event could he not control, after all he was the ordinal highest paid CEO in the America he had to be doing it right. 2. apologize how Aaron Beam might gravel used th e loyal agents argument to defend his actions. Do you think that Aaron Beams situation the loyal agents argument might have been valid? Explain. Under the loyal agents argument Aaron Beams defense would be that Scrushy had ordered him to finagle the accounting records or more specifically the general ledgers. He was seen as reluctant to comply, but was pressured by Scrushy and a bit intimidated by him to the point at multiplication of fear. I do not believe Aaron Beam could have truly used the loyal agents argument.The information shows Scrushy and Beam knew as stated in Velasquez (2012), From the beginning Scrushy and Beam both knew the company had to appear profitable to satisfy investors and lenders and to later succeed in release and selling company stock to the public (page 68). Therefore, Beam had to know Scrushy would be asking or ordering him to make it happen. Based on Beams reluctances, it could be argued he knew this to be wrong but did it anyway. 3. In terms of Kohlbe rgs views on incorrupt development, at what stage of clean development would you place Aaron Beam? Explain. At what stage would you place Richard Scrushy? In terms of Kohlbergs views I believe Aaron Beams moral development would be a take aim Two Stage Three. My rational for this is he knows right and wrong both conventionally and what the law says. He exhibits this by his initial reluctance to support Scruchys decision to manipulate the general ledgers.He also is in awe of Scruchy, and appears to want to enthrall him as a person in authority, and shows his loyalty to after all Scruchy picked Beam to start the company with. In terms of Kohlbergs views I believe Richard Scruchys moral development would be a Level One Stage Two. My rational for this is it is all about him he is egoistical and looks at things only from his own point of view. To support this we only have to look at his life style, he has been married three times, lives extravagantly, plot charitable it appears he threw money around for self-recognition. The pleasures he gains by all of this gives him reason to assume he is right in his own mind. To support this further his own employees describe him as a dictator, cult-like figure, and a capital motivator. This would indicate he was resourceful in getting what he cute by any means necessary, much like a mess up child.ReferenceVelasquez, M. G. (2012). Business ethics, concepts and cases. (7th ed.). Upper Saddle River, NJ Prentice Hall.