Rise and Fall of Enron Essay - 872 Words

The 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, integrity, communication, and excellence. Codes of ethics should be a reflection of what the owners, investors, and employees work towards as an organization. Executives overlooked those values as they deliberately corrupted Enron by engaging in†¦show more content†¦Motivational goals may come from promotions, raises, long term careers, or working for a great company. Self-concordance reflects in the way people reason in practicing goals that are in line with their interests and values. Enron offered those goals to their employees and in returned hired the most qualified, experienced, and self driven people to attain those goals. Working for a very prominent and successful company gave employees the sense of comfort and dependability that breathed prosperity. However, it was those goals that had false hopes. Enron had high aspirations that joint ventures in trading energy with investors in the new virtual market place would be successful but failed and lost millions of dollars. Enron continued to press forward and kept all employees on track but if they were not able to obtain their goals, for the sake of keeping the company above water, they were let go. Once employees dedicate and committed themselves to a strictly structured organized culture, they have a tendency of enduring ethical judgement that is later rationalized in one form or another. Strong leadership, management and organizational structure is what every business should be governed around. The neglect and abuse of that leadership, management, and organizational structure was the ultimate contribution to the failure of Enron. The executives displayed leadership inShow MoreRelatedThe Rise And Fall Of Enron1008 Words   |  5 PagesIntroduction Enron began as an energy company in 1985. After the deregulation of oil and gas in the U.S., Enron lost its’ exclusive rights to natural gas pipelines. The CEO, Kenneth Lay then hired a consulting firm to reinvent the company in order to make up lost profits. He hired Jeffery Skilling, who was in banking, specifically; asset and liability management. Under the topic â€Å"The Beginning Presages the End†, C. William Thomas (2002) writes: â€Å"Thanks to the young consultant, the company createdRead MoreThe Rise And Fall Of Enron1900 Words   |  8 PagesThe 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. 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It could be said that ethics was the last thing on the minds of the executives that worked at Enron. People employed at Enron cared about two things the stock price of the company, and the money they could put in their own pockets. This was what caused the fall of one of the biggest energy companies in the U.S†¦ Enron failing did not happen overnight it tookRead MoreWhat I Learned from Studying the Rise and Fall of Enron693 Words   |  3 Pagestolerated and can lead to the fall of anything from a small mom and pop business to massive a Corporation. That is exactly what happened to the Enron Corporation back in 2001. In this essay I will discuss what exactly Enron is, the unethical business practices that occurred, and my opinion on the scandal and how I would have handled the situation. I will have help accomplishing this with quotes from other credible sources. Honestly, I didn’t know what exactly Enron was before this assignment. OfRead MoreThe rise of Enron took ten years, and the fall only took twenty days. Enron’s fall cost its1600 Words   |  7 PagesThe rise of Enron took ten years, and the fall only took twenty days. Enron’s fall cost its investors $35,948,344,993.501, and forced the government to intervene by passing the Sarbanes-Oxley Act (SOX) 2 in 2002. SOX was put in place as a safeguard against fraud by making executives personally responsible for any fraudulent activity, as well as making audits and financial checks more frequent and rigorous. As a result, SOX allows investors to feel more at ease, knowing that it is highly unlikely