The Ethics Of The Enron Collapse Of Enron - 1366 Words

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 â€Å"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 C EO 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 C ompanies 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 employeeShow MoreRelatedThe Ethics Of The Enron Collapse Of Enron s Bankruptcy1969 Words   |  8 Pagessprees, wild corporate â€Å"gatherings† became the norm. Employees who could not afford the lavish lifestyle created at Enron began to take a toll on them. Trying to keep up with the crowd, lower level employees found themselves maxing out their credit cards and putting themselves in debt. This created an environment that seemed to worry less about earning actual profits. According to Li (2010), shareholders and employees were told by Enron’s CEO the stock would probably rise but did not disclose heRead MoreKey Stakeholders Affected By The Collapse Of E nron1065 Words   |  5 Pageskey stakeholders affected by the collapse of Enron? Explain briefly how each stakeholder was affected. a. Stockholders at first reaped tremendous gains from their investments in Enron stock, because the company’s value rose a lot of quicker than market averages throughout the late Nineteen Nineties. In 2001, because the stock value folded, investors lost $70 billion in value. Each individual and institutional shareholders were hurt. Significantly blasted were Enron workers whose 401(k) retirementRead MoreWhy Enron Collapsed?1143 Words   |  5 PagesWhat are the reasons why Enron collapsed? * Investments Enron dealt in energy. According to Infinite Energy, the first and main cause of Enrons collapse was failed investments. 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It is also a call for a close look at theRead MoreHow Ethics Influence Behavior in Organizations1010 Words   |  5 PagesHOW ETHICS INFLUENCE BEHAVIOR IN ORGANIZATIONS In reality, there are some specific regulations governing our lives. However, regulations do not restrain everything. In some aspects, ethics play a much more important role than regulations. Ethics is â€Å"the code of moral values or principles that governs the behaviors of a person or group with respect to what is right or wrong† (Daft amp; Armstrong, 2012, p.369). Unethical behavior is very common in organizations. When people need to make a decisionRead MoreEnrons Business Ethics Failure1485 Words   |  6 Pages2. The Fall of Enron ...............................................................................4 3. Enrons ethical dilemmas ..................................................................6 4. Conslucions .......................................................................................7 5. 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