Enrone Leadership failure
TABLE OF CONTENTS
EXACUTIVE SUMMARY……………………………………………………………...14
INTRODUCTION …………...………………………………………………………15-16
THE ENRON HISTORY…………………………………………………………….17-18
THE ENRON CULTURE ……………………………………………………………….19
LEADERSHIP FAILURE ………….. ………………………………………………20-21
LEADERSHIP DISCUSSION ………………………………………………………22-25
CONCLUSION…………………………………………………………………………..26
REFERENCES ………………………………………………………………………….27
ENRONE: Failure of Leadership
Executive Summary
Enron stands out as one of the biggest failures in business history. In 2001, Americans were appalled to learn of the unethical practices carried out by leaders and other employees of Enron. Enron used various methods of deception to appear more profitable than it really was, including through creating off-the-book entities to which Enron transferred its substantial debt. (Jennings, 2005).
Enron implosion took the world capital markets and Shake the investor confidence in accounting and financial reporting. It even caused the world’s renowned international accounting firm Arthur Andersen to collapse. The most important gatekeeper could not predict Enron’s collapse before it occurred. It was then discovered that Enron senior management had employed complex creative accounting techniques to manipulate the company’s financial figures and hence boost up the financial performance. (Cruver, July 2002)
This essay explores the internal culture and leadership practices of its top management. It includes a particular emphasis on charismatic leadership, in people like Kenneth Lay and Jeffrey Skilling. The compelling vision of these leaders, expressed in a recruitment system designed to activate a process of conversion and the promotion of culture by conformity and penalizing of dissent.
Introduction
Enron went bankrupt and disappeared thirteen years ago, the impacts it has made on the ethical standards never faded. It took Enron 16 years to go from about ten billion dollar
EXACUTIVE SUMMARY……………………………………………………………...14
INTRODUCTION …………...………………………………………………………15-16
THE ENRON HISTORY…………………………………………………………….17-18
THE ENRON CULTURE ……………………………………………………………….19
LEADERSHIP FAILURE ………….. ………………………………………………20-21
LEADERSHIP DISCUSSION ………………………………………………………22-25
CONCLUSION…………………………………………………………………………..26
REFERENCES ………………………………………………………………………….27
ENRONE: Failure of Leadership
Executive Summary
Enron stands out as one of the biggest failures in business history. In 2001, Americans were appalled to learn of the unethical practices carried out by leaders and other employees of Enron. Enron used various methods of deception to appear more profitable than it really was, including through creating off-the-book entities to which Enron transferred its substantial debt. (Jennings, 2005).
Enron implosion took the world capital markets and Shake the investor confidence in accounting and financial reporting. It even caused the world’s renowned international accounting firm Arthur Andersen to collapse. The most important gatekeeper could not predict Enron’s collapse before it occurred. It was then discovered that Enron senior management had employed complex creative accounting techniques to manipulate the company’s financial figures and hence boost up the financial performance. (Cruver, July 2002)
This essay explores the internal culture and leadership practices of its top management. It includes a particular emphasis on charismatic leadership, in people like Kenneth Lay and Jeffrey Skilling. The compelling vision of these leaders, expressed in a recruitment system designed to activate a process of conversion and the promotion of culture by conformity and penalizing of dissent.
Introduction
Enron went bankrupt and disappeared thirteen years ago, the impacts it has made on the ethical standards never faded. It took Enron 16 years to go from about ten billion dollar
References: Integrity. We work with customers and prospects openly, honestly and sincerely. When we say we will do something, we will do it; when we say we cannot or will not do something, then we won’t do it. (chairman, 2000) Communication