The Organization Behaviors Of Enron Essay - 1390 Words

The Organization Behaviors of Enron Introduction Enron is considered America’s largest corporate failure in history and is a story about greed, fraud, and human tragedy. In 1986, Houston National Gas and Internorth, a natural gas pipeline company, merged to create Enron with Ken Lay as the chair and chief executive officer (CEO). Lay transformed the company into a high tech global operation that traded water, energy, broadband, and electricity. In less than a year, problems arose of fraud and an investigation confirmed inaccuracies with the companies accounting records. In 2000, Enron’s gross revenues exceeded $100 billion, yet no one really knew how Enron was making its money (Stein Pinto, 2011). In September 2001 when bankruptcy was imminent, top executives secretively took their stock options worth millions while encouraging employees to keep theirs in the company. Three months later, more than 20,000 employees lost their jobs, insurance, and pensions when Enron announced bankruptcy. The movie Enron, The S martest Guys in the Room, is about how management, leadership, and organizational structures failed and caused unnecessary harm to many people (Gibney, 2005). This paper will look at how organizational behaviors including; ethics, culture, and leadership styles of top executive leaders caused the debacle of Enron. Ethics The three most notable executives at Enron were Jeff Skilling, Ken Lay and Andrew Fastow. Jeff Skilling believed that the only thing thatShow MoreRelatedEthical Issues Faced By Enron Should Have Be Aware Of Certain Risk Factors1301 Words   |  6 PagesEthical Problems Head On Enron should have be aware of certain risk factors can lead to unethical behavior. Top management must adhere and emulate the highest ethical standards. 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