Enrons Organizational Culture Enron - 1643 Words

Enron: [Don’t] Ask Why During the year 2000, Enron was exceeding all expectations, its stock was through the roof, and the company seemed to be on top of the world. The next year Enron declared bankruptcy. So how did a company rise and fall so quickly? The key in analysing this question lies in Enron’s organizational culture, which is defined as â€Å"a shared meaning held by members distinguishing an organization† (Robbins and Judge, Essentials of Organizational Behavior, 269). During its prime, Enron appeared to be a successful and innovative company, but in reality was a company rooted in an organizational culture of corruption and greed. The five culture dimensions of stability, risk taking and innovation, attention to detail, outcome orientation, and aggressiveness are key to understanding how unethical behavior became such a problem at Enron. Before going into an analysis on the organizational culture at Enron, I will first elaborate on the severity of the unethical behavior that existed at Enron. The problem can best be shown in the words of an Enron employee who said â€Å"If I’m going to my boss’s office to talk about compensation, and if I step on some guy’s throat and that doubles it, then I’ll stomp on that guy’s throat†(Enron: The Smartest Guys in the Room). This culture of greed and corruption can also be seen through Enron’s mark to market accounting system, in which Enron cashed in on ideas and â€Å"future profits† without actually making anything. Furthermore,Show MoreRelatedOrganizational Culture : The Smartest Guys Of The Room1649 Words   |  7 PagesJudge, organizational culture is, â€Å"a system of shared meaning held by members that distinguishes the organization from other organizations† (Robbins 249). A strong organizational culture is on e whose organization’s core values are both intensely held and widely shared. After viewing Enron: The Smartest Guys in the Room, it is obvious that Enron had not only an organizational culture that was strong, but one that was extreme and aggressive. This aggressive and strong organizational culture discouragedRead MoreEssay on CaseAssignment21409 Words   |  6 PagesAssignment: Enron Case 9 Yesenia Garcia BUSI 472- B07 LUO Introduction In 1985 Ken Lay took over a couple of big name gas pipeline companies that came together and thus the infamous Enron Corporation began. They offered a variety of services that were not limited to natural gas but also included electricity, communications, and many energy related services. Together, CEO Jeffrey Skilling, Chairman Ken Lay, and CFO Andrew Fastow were able to bring transformation to Enron. They createdRead MoreFailure Of Responsible Management : Enron Corporation1645 Words   |  7 Pageswhich failure of responsible management. The Enron Corporation is an example, because Enron event is the typical case for organization failure of responsible management In the end of 2001, Enron scandal has been disclosure, Enron stock prices slumped, and its financial tricks was exposed. The Securities and Exchange Commission (SEC) began survey of company s records. Enron’s auditor ‘Arthur Andersen ‘destroys relevant documents. (Ailon, G. 2011) Enron was bankruptcy in December 2001, and became theRead MoreRise and Fall of Enron Essay872 Words   |  4 PagesThe rise and fall of Enron is a company that was lead to its own demise by it’s own leadership and ill business decisions. The motivational theories explained from the readings of Organization Behavior can correlate with the failure of Enron’s internal organization. Even though a company may appear to display successful business practices, the influence of leadership through management can ultimately lead the company to fail. Enron’s code of ethics prided itself on four key values; respect, integrityRead MoreThe Organization Behaviors Of Enron Essay1390 Words   |  6 PagesThe Organization Behaviors of Enron Introduction Enron is considered America’s largest corporate failure in history and is a story about greed, fraud, and human tragedy. In 1986, Houston National Gas and Internorth, a natural gas pipeline company, merged to create Enron with Ken Lay as the chair and chief executive officer (CEO). Lay transformed the company into a high tech global operation that traded water, energy, broadband, and electricity. In less than a year, problems arose of fraud andRead MoreEnron s Ethical Meltdown : Enron1097 Words   |  5 PagesReichart Extra Credit for Final September 6, 2016 Enron the Smartest Guys in the Room Question 1 Summarize 1 one page how you would explain Enron’s ethical meltdown: Enron was an energy company founded by Kenneth Lay in 1985 through a merger of vast networks of natural gas lines. Enron specialized in wholesale, natural gas, and electricity, and made its money as a wholesaler between suppliers and customers rather than actually owning any. Enron in fact didn’t own any assets, which made their accountingRead MoreComm101 Tutorial1 Essay858 Words   |  4 Pagesï » ¿Comm101 Tutorial 1) What were the individual factors that contributed to the failure of Enron? Briefly explain two key factors. Enron collapsed in large part because of the unethical practices of its executives. Egoism (Self interest) was one of the major factors contributed to the failure of Enron. Enron’s executives put their own interests above those of their employees, company and the public, and failed to exercise proper oversight or shoulder responsibility for ethical failings. They allowedRead MoreThe Impact Of Organizational Culture On Enron s Predicament And Understands How These Behaviors Were Cultivated And Reinforced1460 Words   |  6 PagesThe tale of Enron presents a unique perspective on success. In the short span of 24 months, Enron transformed from being the top firm in its industry to one that filed for bankruptcy. The reflection about how the tides changed in such a short period uncovers many surprising truths. In its glory days Enron beamed billion dollar profits each quarter, however this success was all a part of an elaborate scheme. Behind the veil of smoke and mirrors was a se ries of deceptive and unethical accounting practicesRead MoreEnrons Ethical Dilemma1118 Words   |  4 Pagesï » ¿Enrons Ethical Dilemma: Ethical and moral issues have received substantial focus in the modern society because of the recent cases in which huge corporations with big profits and earnings have faced bankruptcy. Enron is an example of corporations that have faced bankruptcy in the recent past because of the numerous problems it had with federal and state governments for manipulation of financial statements. While these problems are not only attributed to organizational issues, accounting firmsRead MoreA Discussion On Ethics And Law Essay1635 Words   |  7 Pages Enron, a Discussion on Ethics and Law Leadership’s Role in Ethical Dilemma As documented in a promotional video for Enron, Kenneth Lay states: â€Å"Enron is a company that deals with everyone with absolute integrity. We play by all the rules. . . We want people to leave a transaction with Enron thinking they have been dealt with in the highest possible way, as far as integrity and truthfulness and really doing our business right.† (Enron Vision and Values, 1998, 3:32) Whereas this message was intended