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Business Ethics and Organizational Culture - Enron Corporation

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Discuss the ways in which Enron's leadership and culture influenced its business ethics.

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Basically, we're looking at a company (Enron) where the leadership set the motives and actions for the remaining people in the organization. While the myriad of frauds taking place were only known to the CEO and CFO at first, they quickly became known to other executives. The executives then felt "comfortable" enough in those frauds to give directions to others in the ...

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This solution discusses the ways in which Enron's leadership and culture influenced its business ethics. A thorough discussion is provided. Includes 2 resources.

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Assessing Business Ethics and Organizational Culture

Article: Madsen, S. & Vance, C. (2009). Unlearned lessons from the past: an insider's view of Enron's downfall. Corporate Governance, 9(2), 216-227.

Define "organizational culture." Please be very specific (and be sure that you provide references for your description of culture).

Evaluate Enron's sense of business ethics and business operations in the context of the organization's culture? Specifically, what went wrong?

What should have been the role and responsibility of company leadership (the Board of Directors, the CEO Ken Lay and others)? In what ways did key executive players (e.g., Lay, Skilling, and Fastow) work to negatively reshape the culture, and with what adverse consequences?

How might Human Resource Management (HRM) have played a central role in setting the "moral compass" at Enron, helping to form and shape the organizational culture (perhaps avoiding the Enron debacle altogether)?

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