Failure And Failure Of Enron

909 Words4 Pages
There were some impediments to responsible actions to cause Enron failure and bankruptcy. First, Enron had a culture of egocentric to confuse people to believe that they were good in business management. Enron invested the projects with high risk. Some of the projects with high risk and failure development. This had led to Enron no profit and increased their debt. For example, Rebecca Mark failed to develop the project of Dabhol Power Plant in India. After that, Enron used the complex financial reports to confuse the shareholders, investors, analysts and customers. For example, Jeffrey Skilling used some criminal ways like to hide the debt of Enron.
The executives of Enron were egocentric to manage Enron. They were self- interest and ignorance
…show more content…
They were self-deception to deal with customers even though they suspected the financial situation in their company. They fear to lose their job because they thought they were hard to find a new job to get the same salary, reward and bonus in Enron. They were also fear to disagree the orders of their superior. For example, they fear to disagree with the order of Kenneth Lay to force them to book the travel packet through the travel agency of Kenneth Lay’s sister with high cost and bad service. They also did not criticize their superiors when their superiors do some wrong…show more content…
Enron managed the business did not obey the law. Enron made some criminal cases in finance and business to get the high profit and hide the debt. Some of the executives of Enron deceived the investors to buy the stock of Enron because the stock price will rise. Enron also made fake financial reports to cheat the shareholders, analysts and customers. Enron is dishonest to do the business. Kenneth Lay failed to do his duty as the chairman of Enron to manage his subordinates to let them destroyed the operation of
Get Access