AARON BEAM
CASE 2
Aaron Beam and the HealthSouth Fraud
1. Which of the “obstacles” to moral behavior do you see at work in Aaron Beam’s behavior and thinking? In Scrushy’s?
An obstacle to Aaron Beam’s moral behavior is when he moved some of the business start up costs as expenses and lists them as capital investment, which inflates the company profit margins. Beam initially did this because of the pressure from Scrushy to make the company appear more profitable. Then, the cycle continues.
2. Explain how Aaron Beam might have used the “loyal agent’s arguments” to defends his actions. Do you think that in Aaron Beam’s situation the “loyal agent’s argument” might have been valid? Explain.
The way I understand the meaning of the “loyal agent’s arguments” is that you do what you are instructed to do by your employer regardless. However, I do not believe Aaron Beam could or should have used the loyal agent's arguments to defend his actions. The only way possible would have been because his boss, Scrushy pressures him into cooking the book so to speak. Beam knew he was stretching the truth because he continues to believe that the investor had to have some kind of knowledge of what he was doing. 3. In terms of Kohlberg’s views in moral development on what stage of moral development would you place Aaron Beam? Explain. At what stage would you place Richard Scrushy?
According to the May understanding of the three level of Kohlberg’s moral development. I would place Beam in level two: stage three: interpersonal concordance orientation, based on how he conforms to how Scrushy expect him to act. It is important for a person in this stage to feel well like and I believe Beam needed that validation. I found identifying a stage for Scrushy to be more difficult. I would pick level one: stage two: instrumental and relatives orientation primarily because Scrushy ultimately get what he wants. He will use the system or manipulate people to fulfill his own needs.
Aaron Beam and the HealthSouth Fraud
1. Which of the “obstacles” to moral behavior do you see at work in Aaron Beam’s behavior and thinking? In Scrushy’s?
An obstacle to Aaron Beam’s moral behavior is when he moved some of the business start up costs as expenses and lists them as capital investment, which inflates the company profit margins. Beam initially did this because of the pressure from Scrushy to make the company appear more profitable. Then, the cycle continues.
2. Explain how Aaron Beam might have used the “loyal agent’s arguments” to defends his actions. Do you think that in Aaron Beam’s situation the “loyal agent’s argument” might have been valid? Explain.
The way I understand the meaning of the “loyal agent’s arguments” is that you do what you are instructed to do by your employer regardless. However, I do not believe Aaron Beam could or should have used the loyal agent's arguments to defend his actions. The only way possible would have been because his boss, Scrushy pressures him into cooking the book so to speak. Beam knew he was stretching the truth because he continues to believe that the investor had to have some kind of knowledge of what he was doing. 3. In terms of Kohlberg’s views in moral development on what stage of moral development would you place Aaron Beam? Explain. At what stage would you place Richard Scrushy?
According to the May understanding of the three level of Kohlberg’s moral development. I would place Beam in level two: stage three: interpersonal concordance orientation, based on how he conforms to how Scrushy expect him to act. It is important for a person in this stage to feel well like and I believe Beam needed that validation. I found identifying a stage for Scrushy to be more difficult. I would pick level one: stage two: instrumental and relatives orientation primarily because Scrushy ultimately get what he wants. He will use the system or manipulate people to fulfill his own needs.