ETH501 Adelphia Case

For this case study we are asked to draw upon deontological ethics, and discuss how Adelphia Communications’ executives violated the trust of the company’s shareholders and the trust of that of the larger public. To do this we first need to take a look at deontological ethics and how the philosophy of deontological ethics affects the choices that were made in the Adelphia Communications’ case. We will also look at the Adelphia case and examine how its executives violated the trust of the company’s shareholders and that of the public. So what is the philosophy of deontological ethics? Theories in this category address the question of what makes one’s actions right and another’s wrong irrespective of the consequences of the action. It emphasizes what is the right thing to do rather than what is the good thing to do. The term deontological derives from the Ancient Greek word for “duty” which neatly encapsulates this approach. So the premise of this theory seeks to justify our obligation to behave in some ways and not in others. Further more the essence of deontological ethics is that an action’s moral value is independent of its consequences. An actions moral value depends on whether the motivation was to ones duty. (Duska and Duska 2003). According to this theory, there is only one possible action, the fair thing to do. Which means that all of us have the duty to take the right action. Did Adelphia’s executives take the right actions? Were their actions moral? Were the actions they took motivated by ones duty? To find the answers we need to look closely at the Adelphia Communication’s scandal. The following is some needed background information on the company.

John Rigas and two partners formed Adelphia in 1952. He bought out the partners and expanded his business with his brother and, later, his sons. On July 1, 1986, the company was publicly listed. Five cable television

References: 1. Barlaup, K., Hanne, I. D., & Stuart, I. (2009). Restoring trust in auditing: Ethical discernment and the Adelphia scandal. Managerial Auditing Journal, 24(2), 183-203. Retrieved on October 12, 2013. 2. DeBaise, C. (2002), "Ex-Adelphia aide pleads guilty. To testify against rigas family", The Wall Street Journal, November 15. 3. Duska, R.F. and Duska B.S. (2003), Accounting Ethics: Foundation of Business Ethics, Blackwell Publishing Ltd., Oxford, UK. 4. Markon, J. (2002), "Adelphia ex-officials are indicted", The Wall Street Journal, September 24. 5. The Wall Street Journal (2006), “FCC Clears $17 Billion Purchase of Adelphia”, The Wall Street Journal, July 14.