Enron And Its Impact On Enron s Corporate Bankruptcy Essay

Enron was founded in 1985 by Kenneth Lay and by the mid 90s under the tutelage of Jeff Skilling, it was being touted as a revolutionary company that was destined to change the face of business and the energy industry. However, by 2001 it became clear that Enron’s astronomical growth and sustained profitability was built upon fraudulent grounds. The company was stashing debt but continued to report profits. Employees were taking huge risk and gambling exorbitant amounts and many were outright stealing from the company for their own personal gains. By the end of 2001, Enron’s downfall resulted in the largest corporate bankruptcy in United States history at the time, and more than 20,000 employees were laid off. The company’s fall from grace wasn’t a result of incompetence, instead it was the inevitable consequence of the toxic culture which was incubated and disseminated by Enron’s top management to all other aspects of the company. Enron’s st rong culture became a liability because culture defines what is important to the organization and informs employees about how things are meant to be done. As I will demonstrate through various examples of Enron’s questionable business tactics, its potent corporate culture was low on attention to detail while being high on aggressiveness, risk taking and outcome orientation. This combination of factors created the climate for unethical behavior to become a deep-rooted norm within the organization. One dimension of Enron’s cultureShow MoreRelatedEnron Scandal And Its Impact On The Economy Essay1305 Words   |  6 PagesThe Enron scandal was the largest corporate financial scandal ever when it emerged. It took the economy the better part of a year to recover from the damage the Enron controversy caused to the US as a whole. Enron is not fully responsible, but it was a large contributor to the collapse of the stock market in the early 2000’s. 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