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Assessing Business Ethics and Organizational Culture

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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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Solution Summary

The response provides you a structured explanation of morality and business operations. It also gives you the relevant references.

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

The organizational culture is the values and behaviors that add to and support a unique social and psychological environment in an organization. It is a collective behavior of individuals who are a part of an organization and the meanings that the people attach to their actions. It is the sum of beliefs and values of the organization. The culture of every organization differs from that of another (1).

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

The organizational culture of Enron was that it was proper to inflate revenues. In this context mark-to-market accounting was introduced. With this culture special ...

Solution provided by:
Hatim Baxamusa, MBA
Education
  • BSc , University of Calcutta
  • MBA, Eastern Institute for Integrated Learning in Management
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