Essay on Enron: Corporate Culture

3758 Words Sep 22nd, 2015 16 Pages
Corporate Culture

Q1: Analyse the corporate culture at Enron and its management’s behaviour. Include in your analysis, the normative theory of ethics which you would consider most relevant in driving the decision making at Enron.
Enron began by merger of two Houston pipeline companies in 1985, although as a new company Enron faced a lot of financial difficulties in the starting years, though the company was able to survive these financial problems (Enron Ethics, 2010). In 1988 the deregulation of the electrical power markets came into action and flipped the company from up to down, after deregulation company business updated from delivering energy to becoming an energy broker and soon after this Enron once a company struggling
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The analysis of Enron’s organisational structures reveals that top manager of any organisational at all the times must be responsible for each and every decision and anything that happens in the firm. Hence the top manager Kenneth Lay did not have any right objective and mission in the firm. But the success of the business depends on the executives abilities to leadership, influence on others and how the goals and interests are followed by Ken lay’s position as a chairman was just a title for the company and as evidence of that is the action of passing the responsibilities to the Jeff Skilling (ABC News, 2002). That could be seen as the countdown of the organisational structure breakdown which is related as the key issue to all the business.
If the leaders of the company force and motivate unlawful and unethical actions the results an aggressive environment. It is not shocking that the ethical boundaries were no longer meant anything for the workers and officer of the company. Schein (1985) has highlighted on leadership as the most reactive component of the organization’s culture, it effects very significantly on everyone working under him or with him because leaders can create, strengthen or transform organization’s culture. This not only applies to an organization’s ethical environment but also the external organizations attached to this organization. As per Schein (1985) there are five essential components that a leader can use to impact an organization’s

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