Enron Case Essay

1. What led to the prostration of Enron under Lay and Skilling?

There were assorted grounds as to why Enron collapsed under Lay and Skilling. One ground Enron collapsed under Lay is because Lay merely did non pattern what he preached. Lay did non populate by his codification of moralss and neither did his corporation. Not merely that. but Lay and top direction gave Andrew Fastow an freedom to the codification of moralss to go on making concern. Another ground that Enron collapsed. under Skilling. is that Skilling had a public presentation rating procedure for all Enron employees that didn’t show the codification of moralss that they should’ve followed which caused employees to rank their equals lower as to heighten their ain place in the house.

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2. How did the top leading at Enron undermine the foundational values of the Enron Code of Ethical motives?

The top leading at Enron undermined the foundational values by allowing an freedom to Andrew Fastow to go on conveying in soiled money through his actions. Besides. the top leading allowed an unethical civilization of moralss by advancing to the employees that they had to do the Numberss literally any manner they could even if that meant to interrupt the jurisprudence.

3. Given Kenneth Lay’s and Jeff Skilling’s runing beliefs and the Enron Code of Ethics. what outlooks sing ethical determinations and actions should Enron’s employees moderately have had?

Enron had a great and well-thought-of codification of moralss among its equals. Besides. Lay and Skilling had respectable operating beliefs since they besides represented the Enron Code of Ethics. So. moderately. the employees’ outlooks should hold merriment to make the right thing morally and ethically every bit good as to continue the regard. unity. communicating. and excellence Enron stood for.

4. How did Enron’s corporate civilization advance unethical determinations and actions?

Enron’s corporate civilization promoted unethical determinations and actions merely by the greed that the top direction showed and carried out. For illustration. Skilling’s execution of public presentation ratings for all the employees was unethical because it was geared to fire the lower fifth part of the employees. Not merely that. but partnerships were largely created merely to conceal the companies’ losingss through the fillip plan.

5. How did the investing banking community contribute to the ethical prostration of Enron?

The investing banking community contributed to the ethical prostration of Enron because non merely were they enablers but they besides participated in the frauds every bit good. For illustration. Enron would book loans called prepays to their operating hard currency flow. Besides. Andrew Fastow was besides allowed to utilize a tactic where a hapless acting plus would be taken off the books and be sold back to the company at net income after the terminal of quarters after the net incomes had been booked.


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