Case Study: Aaron Beam and The Health South Fraud

Read Case Study 1.2: Aaron Beam and the Health South Fraud on pages 49 – 52. (attached) Respond to the following questions:

1. Explain how Beam might have used the loyal agents argument to defend his actions. Do you think that in Beam’s situation, the loyal agents argument might have been valid? Explain.

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2. Was Beam morally responsible for engaging in the “aggressive accounting” methods he used? Was his responsibility mitigated in any way? Was he morally responsible for changing the clinic reports to increase the company’s earnings? Was his responsibility for this mitigated? Were those who cooperated with his actions morally responsible for those actions? Do you think Scrushy was morally responsible for the accounting fraud?¬† Explain your answers.

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