Enron Failure

The bankruptcy of Enron Corporation became a symbol of the excesses of corporations during the economic drum around of the 1990s in the United States. Once billed as Americas Most Innovative Comp some(prenominal) by event magazine, Enron became one of the largest bankruptcies in U.S. history in celestial analog 2001. The comp whatevers collapse resulted from the reporting of false profits, and by using accounting methods that failed to follow generally accepted procedures. inherent and external controls failed to detect the financial losses disguised as profits for several years. Enrons failure was a result of a breakdown of corporate structure and a failure of leadership. Without affiliate honourable leadership, ethical standards cannot be established in any(prenominal) organization. Leadership affects the workplace and helps to communicate the ethical standards, vision and fickle charge that serve as a platform for the operations of any company. Enrons managers brought the company to the brink of ruin, and many of Enrons employees disconnected their jobs and a hefty portion of retirement savings invested in Enron stock. The omit of ethical leadership at Enron enabled a finis to develop among management that it was all about the capital!

plot of ground the desire for money, greed and power is not a sweet concept in corporations, Enrons failure was not just now the result of a lack of ethical rules and legal guide rakes and requirements. At Enron, leadership had created a culture that pushed the envelope, a culture that encourage and rewarded risk taking, a culture that wa s fixated on the bottom line and not ethics.! The fundamental problem at Enron was not a lack of aw areness, or a lack of deterrent example reasoning, scarce rather the absence of moral leadership and the neglected phylogenesis of a moral corporate culture. Ethical thinking and detailed thinking are an essential part of leadership. Corporate leaders should grapple how to think, know what they think, and know what they value. If the leadership of an organization is ethical and values...If you want to get a full essay, order it on our website: OrderCustomPaper.com

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