A7
Case Incident: Enron, Ethics, and Organizational Culture

1. I believe that the main cause of the meltdown was because of the management. Root causes lie in leadership and the control environment. Ethically, they tried to make things disappear through their bankers and accountants. They tried to legalize all of the non-performing assets, and other illegal part taking, they eventually we caught. Ambition wise, their goal was to be number one on the Fortune 500 list. 3500 SPE’s were created, there was no real picture set, and they were breaking all the accounting rules. As for complexity, they had guarantees for their stocks. While in actuality, it was plummeting the entire time. In addition, the collaborators who aided and bedded including the accountants, bankers, lawyers,stock brokers, directors, etc. They kept shifting the responsibility whenever approached. 2. This just shows that there was no room for whistle blowers because people were scared to talk. It was out of control and this just shows a failure to take anything seriously because even the corporate culture was compromised. This would make ethical people stay quiet, because they saw that the important hire ups were the ones committing the violations in the first place. 3. First, Enron was extremely arrogant and not well grounded at all. Their culture showed values of high-risk taking, aggressive growth and entrepreneurial creativity. Though these attributes are considered positive, they were still not balanced with attention to corporate integrity. Some things Enron could have done to create a healthy ethical culture is the selection and hiring of ethically oriented employees, establishing a code of the ethics, promoting an ethical culture, developing employees internally, and take a stewardship perspective.

Case Incident: The New Safety and Health Program

1. Some