Enron And Corporate Culture Of Enron

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Introduction 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 “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 their investors, which led to more investors giving Enron their money. There were many factors that aided Enron in their demise, but the largest was the greed of Enron’s executives, the auditors, and the attorneys. The corporate culture of Enron, their auditors bankers and attorneys and their Chief Financial Officer played vital roles in the fall of Enron. How did the corporate culture of Enron contribute to its bankruptcy? In its wake, Enron’s CEO, Ken Lay, wanted Enron to be a company which cultivated a culture that allowed employees the opportunity to reach their full potential. Lay wanted to make Enron a company that had high integrity and moral values, but as time progressed Enron became a company which pushed its integrity aside to engage in fraudulent behavior so that the executives could earn more profit (Ferrell, p. 487). Enron’s corporate culture would be best described as very proud and arrogant. The company even displayed a banner in their lobby which stated, “The
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