Enron : Failed Leadership Example Essay

1413 Words Oct 8th, 2014 6 Pages
ENRON - Failed leadership example

Background
In 2001, Americans were dismayed to learn of the unethical practices did by pioneers and different representatives of Enron (and additionally its bookkeeping firm, Arthur Andersen). “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). While the organization 's stock rose, so did its obligation, and organization administration started utilizing insider data and exchanging millions of dollar in organization stock. “When the scandal and impending bankruptcy were revealed, the company’s stock decreased from $90 to less than $1, a devastating hit to the financial market and numerous investors and employees” (Betz, 2002). While people in general were stunned at the various unscrupulous money related practices, a few hierarchical conduct speculations, when connected to Enron, clarify how such untrustworthy movement could be allowed to happen.

Impacts of Company Executives and Managers
Company executives and managers directly impact the ethical direction of a company. When the executives and managers are ethical, employees are more likely to act ethically. Enron’s leadership may have been extremely influential because several exemplified charismatic leadership—especially Jeffrey Skilling and Kenneth Lay—greatly encouraging employees to follow their lead. Managers have the important role…

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