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Questions and Answers - Case Study Example

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The Enron Scandal Date The Enron Scandal 1. In what ways did the leadership at Enron fail? Who were the leaders? The leadership at Enron failed because they were not attentive enough about the off-book financial entities of Enron…
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Questions and Answers

The leaders were Jeffrey Skilling, former Enron President and CEO, Kenneth Lay, CEO and Andrew Fastow, Ex-Chief Financial Officer. 2. How did leadership influence the organizational culture at Enron? Jeffrey Skilling and Andrew Fastow were instrumental in changing the organizational culture of Enron. They gave the perception that Enron was very innovative and very profitable. Enron has a dysfunctional corporate culture which was obsessed with short-term earnings so that the bonuses will be maximized. The employees began looking at high volume deals even if it meant disregarding the quality of the cash flows and profits. The employees’ actions were reflective of their leaders’ values and beliefs. Extravagant spending was common among its executives. The excessive stock options and corporate compensation gave Enron’s executives too many incentives to manipulate the financial accounts and the stock price of the company. Corporate values and principles seemed to disappear at Enron at the time of their leadership. 3. Did the performance evaluation system at Enron support or undermine the company’s business goals and leadership beliefs? Yes, the performance evaluation system at the time of Skilling supported the company’s business goals and leadership beliefs. ... Read More
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