The Rise And Fall Of Enron

1900 Words Apr 18th, 2016 8 Pages
The Rise and Fall of Enron
One of the most basic tenets of all companies, whether small or large, is to create a principled corporate culture. Those ethical principles must start with the executives of the organization and trickle down to the individual employees. Leaders affect the employees’ decision-making process, yet they tend to adopt the same rationale as their leaders when reaching a decision. The leadership of a company needs to find a balance between risk and creating opportunity. While generating revenue and growth are paramount, at most, organizations, executives set the tone regarding what actions and behaviors are acceptable to achieve these objectives. This paper will explore what happened to Enron when its leadership encouraged employees to disregard societal norms, the role unprofessional behavior played in Enron’s collapse and explore possible solutions and strategies to overcome these problems. To address the issue of ethics, Enron should have created a code of ethics and standards, developed internal controls to detect unethical behavior, communicated more efficiently, and employed a workforce of diverse personalities.
Enron was an energy, commodities, and service company in Houston, Texas. Kenneth Lay served as an executive at the Houston Natural Gas Company when it was purchased by another energy company that eventually changed its name to Enron in 1985 under Lay’s leadership. Lay served as the Chief Executive Officer and Chairman of the Board…
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