Rise and Fall of Enron

876 words 4 pages
The rise and fall of Enron is a company that was lead to its own demise by it’s own leadership and ill business decisions. The motivational theories explained from the readings of Organization Behavior can correlate with the failure of Enron’s internal organization. Even though a company may appear to display successful business practices, the influence of leadership through management can ultimately lead the company to fail.

Enron’s code of ethics prided itself on four key values; respect, integrity, communication, and excellence. Codes of ethics should be a reflection of what the owners, investors, and employees work towards as an organization. Executives overlooked those values as they deliberately corrupted Enron by engaging in
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Under the leadership of Jeffrey Skilling, he exercised a highly strict culture that included the recruitment of top intelligent and assertive candidates from prestigious universities who were trained to produce deals rapidly. Management encouraged and required a high level of performance by each employee to any means necessary, which lead to breaking ethical business practices. As those ventures failed, executives continued unethical behavior which led to accounting fraud, falsifying income, and a number of other malpractices and abuses of power. Enron maintained to administer a series of appropriate management control which included a performance review system, risk assessment and control group, followed by a code of ethics. These groups worked on behalf of Skilling’s organizational structure and assured the employees protection. The levels of communication between management were evidently clear of doubt in regards to any questionable actions dealing with projects.

Enron’s organizational structure proved to ruin the integrity of the company with corruption, influence, and manipulation. Influential leadership can carry power to others in ethical or unethical ways to serve a single purpose. Enron used those powers to create a culture that demanded excellence. Skilling’s leadership role at Enron influenced unethical behavior and directed the organizational culture to discredit the morals and values of the company. While motivation of rank, greed, and power


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