The Ethics Of The Enron Collapse Of Enron

Decent Essays

Culture of Enron
Before Enron bankruptcy it was one of America’s most powerful and successful energy companies. The company thrived and pushed to be number one no matter the circumstance, in this company’s case if it meant doing it illegally. Fraud accounting, auditing, energy trading, and illegal finance was the company’s downfall leading to corruption and most of all greed. Enron was aggressive and a competitive environment. The documentary was just not giving the name “The Smartest Guys in the Room,” for nothing, being an Enron employee that’s the title everyone held. Enron’s culture was a rapidly changing environment created by the corporate’s leadership and management. When you hold the title of leadership you are responsible for …show more content…

Withdrawal involves resigning from the organization or getting a transfer in order to avoid having to remain in a situation where an employee has to choose one value over another. The CEO of Enron, Jeff Skilling resigned and led employees to believe that it was a personal reason but he left a couple of year’s right before the company went bankruptcy. Jeff skilling tried to avoid every situation but everyone wanted answers. Someone at the top of their game just suddenly doesn’t want a part of the company he help build to be number one. Transformation occurs when an individual employee alters his or her personal values to conform to the values of the organization. Rationalization occurs when an employee adjusts his or her perception of right and wrong behavior in order to justify the organization 's actions. For example the company might try to betray what they are doing is wrong, but this and this is the only way to accomplish the job. After the resignation of Skilling, the chairman Kenneth Lay took the CEO position and instead of him acknowledging that it was problem he led everyone to believe otherwise. Lay showed confidence and encourage Energy Companies and even employees not to withdraw their stocks no matter how much the company continued to lose money. He always lead everyone there to think that the problem would be solved like once before. He convinced them that there was no way that Enron could lose. Aggression involves the situation an organizational employee

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