The Corporate Culture Of Enron - 1474 Words

How did the corporate culture of Enron contribute to its bankruptcy? The Enron Corporation was an energy trading and utilities company that eventually failed due to the discovery that Enron was hiding large debts and losses in financial documents. â€Å"Through its subsidiaries and numerous affiliates, the company provided products and services related to natural gas, electricity, and communications for its wholesale and retail customers† (Ferrell, Fraedrich Ferrell, 2015, p. 486). A company’s corporate culture has a lot to do how efficient the company is, and how the company avoids negative situations such as bankruptcy. Enron was involved in numerous financial scandals, and the corporate culture of Enron played a large part in these scandals. The corporate culture at Enron had an arrogant aura that plagued the company. â€Å"This overwhelming aura of pride was based on a deep-seated belief that Enron’s employees could handle increased risk without danger† (Ferrell, Fraedrich Ferrell, 2015, p. 487). Getting involved with major risks combined with thinking there would not be any consequences contributed to Enron’s bankruptcy. Enron was considered to be one of the most innovative companies a t its time because of its fast growth, and unique commodities. Little did most people know, Enron was abusing this power. Enron’s executives created a corporate culture that promoted cutthroat competition between employees. These extreme cutthroat environments can easily brainwash employeesShow MoreRelatedEnron And Corporate Culture Of Enron1322 Words   |  6 PagesIntroduction In 1985 The Enron Corporation came into existence after a successful merger between two gas pipeline companies. The company nurtured a very competitive culture, which encouraged employees to win at any means necessary. Enron’s culture led employees to â€Å"cast loyalty and ethics aside in favor of high performance† (Ferrell, p. 494). The executives of Enron covered up their increasing debt by using special purpose entities. Meanwhile, Enron continued to report increasing profits to theirRead MoreEnron: Corporate Culture3743 Words   |  15 PagesENRON Corporate Culture Q1: Analyse the corporate culture at Enron and its management’s behaviour. Include in your analysis, the normative theory of ethics which you would consider most relevant in driving the decision making at Enron. Enron began by merger of two Houston pipeline companies in 1985, although as a new company Enron faced a lot of financial difficulties in the starting years, though the company was able to survive these financial problems (Enron Ethics, 2010). In 1988 the deregulationRead MoreCorporate Culture Of Enron And Bankruptcy1327 Words   |  6 PagesIntroduction The case study is about Enron and about their biggest failure that lead the company towards bankruptcy. Enron got bankrupt to the extent that was no point of returning back and reversing its wrong doings. The only thing that the company had to think about was how to return the losses of its creditors. Enron Corp. was left with $12 billion in assets which was to be distributed among more than 20,000 creditors. Around 80% of creditors of Enron backed the long-awaited reorganization planRead MoreThe Failed Corporate Culture of Enron4805 Words   |  20 PagesThe Failed Corporate Culture of Enron High risk accounting, inappropriate conflicts of interest, extensive undisclosed off-the-books activity, excessive compensation Ââ€" these are some of the headings of the report prepared by the U.S. Senates Permanent Subcommittee on Investigations titled The Role of the Board of Directors in Enrons Collapse. (Permanent Subcommittee on Investigations, 2002) In February, 2002, Enrons former Chief Executive Officer Jeffery Skilling had testified before membersRead MoreThe Impact Of Enron s Corporate Culture1950 Words   |  8 PagesVarying Impacts Enron’s corporate culture had a great deal to do with the benefits it gave to its employees as well as its top managers beginning with overlooking unethical behavior as long as it provided monetary value. Their corporate culture is described as arrogant, and rightfully so, by the end of 2000 Enron had become the sixth largest energy company in the world (United States Government Publishing Office, 2003, p. 67). This mindset of superiority and pride lead employees to believe they couldRead MoreUniversity of Phoenix Organizational Culture1133 Words   |  5 PagesOrganizational culture can be defined as the system of attitudes, beliefs and values that are collectively expressed in support of organizational structure. Organizational culture is a pattern of shared basic assumptions that dictate the behavior of individuals within an organization. Culture determines which practices are appropriate and which are not, effectively developing standards, guidelines, and expectations for individuals within an organization. Although they work hand in hand, there isRead MoreFailure Of Responsible Management : Enron Corporation1645 Words   |  7 Pageswhich failure of responsible management. The Enron Corporation is an example, because Enron event is the typical case for organization failure of responsible management In the end of 2001, Enron scandal has been disclosure, Enron stock prices slumped, and its financial tricks was exposed. The Securities and Exchange Commission (SEC) began survey of company s records. Enron’s auditor ‘Arthur Andersen ‘destroys relevant documents. (Ailon, G. 2011) Enron was bankruptcy in December 2001, and became theRead MoreEnron’s Stakeholder Impact Case Analysis Essay1725 Words   |  7 PagesIntroduction: Widely known as the champion of the energy industry, Enron is suddenly faced with a corporate crisis in the form of a scandal. This scandal involves not only Enron’s accounting practices but also its corporate governance and culture (Lawrence Weber, 2008). This report will recommend some potential strategies for Enron to move forward from the scandal. To do this, we must incorporate stakeholder theory, which â€Å"argues that corporations serve a broad public purpose; to create valueRead MoreEnron, An American Energy Company1587 Words   |  7 PagesEnron Leadership One of the best examples recently seen relating to bad leadership is what took place within Enron. Throughout the late ‘90’s, Enron, an American energy company, was considered one of the country s most innovative companies; while the company continued to build power plants and operate gas lines, it became better known for its unique trading businesses (npr.org, 2014). It can be described as the ideal company for the dotcom-driven stock market boom of the 90s; Enron threw itselfRead MoreEnron : The Leading Factor That Had Enron Into Its Demise Essay1608 Words   |  7 Pagesfactor that had Enron into its demise revolves around the notion that, â€Å"companies are often so concerned with appearance and damage control that they are unwilling to engage in the degree of examination required to root out the entrenched causes of trust violations† (Hurley, Gillespie, Ferrin Dietz, 2013). The historical performance of Enron’s rising share prices, coupled to th e constant positive media attentions, only added fuel to the fire in terms of Enron’s competitive culture. As a consequence