In Enron's lobby a banner with attitude spells out "the worlds leading company": Greed was evident from the start of the company, and the culture were talked about how much money they would make. Compensation plans were used to enrich the executives rather to generate profits for shareholders. In Enrons energy services division, which managed the energy needs of the large companies like Eli Lilly, executives were compensated on a market valuation formula that relied on internal estimates. As a result the contracts were inflated, even though it had no impact on the actual cash that was generated. Enron thought they were leading the revolution, and therefore thought they could bend the rules to suite their needs. Skilling was a very difficult person to work for, and demanded respect and loyalty towards Enron. I think that the people were to involve in their own projects to notice the failure of their smaller …show more content…
Any company smaller than Enron can see that creed, arrogance and uncertainty can create doubt in the mind of investors. Enron's failure to secure a consistent flow of income in their core business proves to be the main factor of their dismay. Management that withholds information from their colleges and peers to gain power and enrich themselves prove to be devastating. Any company looking at the mistakes of Enron will see the definite line of moving money around to cover their tracks and therefore there need for more investments to provide for there operational failures. The impact will also create doubt and uncertainty under all investors worldwide, and force them to rethink their investments in new and unsure markets. The effect on J.P.
Morgan Chase & Co. is said that losses of $456 million related to the beleaguered energy trader were recorded. The Bank of New York could stand to lose $100 million or more. The Bank of New York could stand to lose $100 million or more. A estimate of $20 billion or more on bad loans, trading deals and other transactions could follow the result of Enron's bankruptcy filing. Thousands of Enron's employees have invested in Enron stock that the company encourages them to buy, but barred them from selling as the value