Youtube enron the smartest guys in the room

Youtube enron the smartest guys in the room full#

To make matters worse, the company also promoted the use of non-standard accounting practices. Among other wrongs, the compensation plan opened avenues for employees to blow up the value of contracts and make money for themselves through illegal means. Instead of increasing shareholdersвЂ™ profit, the compensation strategy was designed to guarantee maximum benefits for the companyвЂ™s top executives. The prevailing culture permitted employees to continue cheating and stealing as long as they were not caught.ДЄnother source of the downfall was the companyвЂ™s executive compensation plan. Rather than working towards building a committed, reliable, and accountable team, there was a greater focus on making more money for the companyвЂ™s top executives. The corporate culture at Enron allegedly encouraged flouting rules in pursuit of profit. Throughout the companyвЂ™s operations, important values such as respect and integrity were greatly undermined. In addition, the poor corporate culture at Enron did very little to promote integrity and respect.ДЄnything, good or bad, could be done as long as it brought profit to the company. According to Ferrell, Fraedrich, and Ferrell (497), the executive team at Enron believed that no single competitor had a chance against it. Ostensibly, this description has been blamed for making people believe that Enron could handle any kind of risk or pressure without fear of loss. Many people described Enron as a company with a culture of arrogance. How would you characterize EnronвЂ™s culture and what role, and in what way, do you think culture played in the ethical issues at Enron? Regrettably, ethical behavior was never put to practice at Enron as intended. His original idea was to build a highly moral and ethical culture that would compel people to honor the values of respect, integrity, communication, and excellence.

Youtube enron the smartest guys in the room full#

Although EnronвЂ™s CEO had a strong conviction about establishing a healthy environment for individuals to reach their full potential, he did not succeed. It is quite obvious that the unethical culture at Enron denied the company numerous opportunities to remain at the top. Undoubtedly, the unethical and irresponsible culture at Enron especially in financial statements put the company in a very big mess.ДЄccording to Forster (538), every company must understand the negative consequences of unethical behavior. In the end, money was lost and people lost jobs. Unethical culture further caused the company to lose billions of dollars to corrupt employees. This raised suspicion and experts outside the organization started questioning the credibility of the companyвЂ™s financial statements. Failure to insist on accounting transparency, for example, created room for managers to falsify financial statements to make the company look good before the public. Sadly, he was unsuccessful in reinforcing important principles that could keep Enron on the right track. We will write a custom Enron: The Smartest Guys in the Room specifically for youДЇor only $14.00 $11,90/page 308 certified writers online Learn MoreД«ased on the documentary by AltyazД±lД± (1), EnronвЂ™s Chief Executive Officer was regarded by many to be ethical and of high moral standing. He or she is thus able to do what is appropriate in any given situation. A person with good morals can distinguish right from wrong. On the other hand, morality involves acting correctly when confronted with different situations. They are also influenced by the culture and society he or she grows and learns. To a large degree, personal ethics are determined by the experiences one goes through in life. In general, every single individual has his or her set of personal ethics. Drawing from a study by Means (52), ethics refers to principles of right and wrong. Summarize in one page or less how you explain EnronвЂ™s ethical meltdownД®thics attempts to establish the nature of morality and to define and distinguish what is right from what is wrong.