Corporate Culture Of Enron And Bankruptcy

Better Essays
Introduction 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 plan of the company. Creditors were seeking to recover more than $1200 billion. According to Stephen F. Cooper, who was the interim chief executive officer of the company said that only $67 billion was the justified amount. The amount of assets that was available to creditors could grow if the management of Enron succeeded with the mega-claim against financial institutions and leading banks that helped the organization in creating complex deals which helped it inflate cash flow and hide debt (Niskanen, 2005).

Corporate Culture of Enron and Bankruptcy Heavily influenced by the culture to compete rather co-operate, employees at Enron were motivated and driven by huge bonuses and they became scared of the ranking criteria. They were also scared by being asked to leave the company of they did not perform well. All this resulted in unhealthy business activities, which drove colleagues to push each other backwards rather than to help each other to finalize the deal or execute the sale
Get Access