Enron's Concept Of Groupthink

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From an overall group perspective, Enron’s executives and employees were influenced by the concept of groupthink. This form of groupthink resulted in group members hiding, conforming, or discounting information to maintain group cohesion and function. The group members collectively overestimated the group’s morality and ability, ignored contradictory information from outsiders, and pressured each other to preserve conformity within the company. Enron’s employee believed in the words of their leaders as the truth. They would never question anything that Skilling or Lay would say, which resulted in them not even questioning their counterparts or even themselves in their ethics or morality.

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