Enron Case : An American Energy Company

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ENRON CASE Introduction “Organizational behaviour is a field which deal with the study of human behaviour with respect to individuals, structure and group of organization” (kinicki 2012). The study of organizational behaviour came in to importance to have an positive effect to the organization. The reflective essay focuses on the organizational behaviour concepts which lead to the downfall of Enron Company on 2001. Enron is an American energy company which is based on Texas. The company was run by Kenneth Lay and Jeffrey Skilling. The company was able to hide billion dollars of debt by projecting fake financial report and by some loopholes. Andrew Fastow was the chief financial officer of Enron at that time and he was able to mislead the directors of Enron by showing fake documents. After the bankruptcy case was filed, the company share went down from $90 to $1. The Enron failure was the largest bankruptcy in the history of US at that time.“Enron Debacle caused by greed, political connections, and unethical actions resulted in a bankruptcy that shattered the lives and retirement savings of many employees” (Premeaux 2008, p, 14). In this essay we discuss four major OB concepts which were responsible for Enron scandal. Ethics The choice of doing things the correct way is termed as Ethics. It basically is to decide which is good and which is bad. To build an ethical culture in any organization, leader should always be trustworthy, they should encourage fairness among staffs,

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