Posted: June 14th, 2021

Aaron Beam and the HealthSouth Fraud

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In terms of Kohlberg’s views on moral development, Aaron Beam would be at Level Two Conventional Stage Three. Interpersonal Concordance Orientation. Aaron Beam knew that his actions were indeed wrong and he could no longer carry on, therefore, he retired and paid a price for his wrong actions. He now lives off of what he works for. In terms of Kohlberg’s views on moral development, Richard Scrushy would be at the Level One: Pre-conventional Stage One: Punishment and Obedience Orientation.
Scrushy in his own selfish reasons and believed that he did no wrong in doing what he did within his company. Scrushy also paid his dues and went to prison. Aaron Beam was morally responsible for engaging in “aggressive accounting” methods he used because from the very beginning when Scrushy told Beam to fake their financial reports, Beam knew that it was wrong, yet he continued to do it. Beam later on went against his morals and continued to commit fraud until he finally retired.
Aaron Beam’s responsibility was not mitigated in anyway. Even though Beam was “convinced” by Scrushy and his own thoughts, he was still responsible for his own actions of “aggressive accounting”. Aaron Beam was not morally responsible for changing the clinic reports to increase the company’s earnings. His responsibility was mitigated due to the fact that he as well as others was included in reporting false records.

The people whom were cooperated in his actions are morally responsible for their actions. Their responsibilities were also mitigated because they all knew that they were committing fraudulent and continued to do so even after Beam has retired. Richard Scrushy was morally responsible for accounting fraud because even though he did not work under the financial department, he knew what the consequences in the frauds would be. He convinced Beam to so anyways.

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