Required Reading:
Please read the following articles related to Enron:
Madsen, S. & Vance, C. (2009). Unlearned lessons from the past: an insider’s view of Enron’s downfall. Corporate Governance, 9(2), 216-227. Retrieved from ProQuest.
Free, C., Macintosh, N., & Stein, M. (2007). Management Controls: The Organizational Fraud Triangle of Leadership, Culture and Control in Enron. Ivey Business Journal Online. Retrieved from ProQuest.
Meisinger, S. R. (2012). Examining organizational ethics. Human Resource Executive Online (June, 2011). Retrieved on November 19, 2012 from: http://www.hreonline.com/HRE/story.jsp?storyId=533348507
Assignment:
Please address the following:
Discuss the ways in which a company’s leadership and culture influence its business ethics.
Keys to the Assignment:
•Define “organizational culture.” Please be very specific (and be sure that you provide references for your description of culture).
•Evaluate Enron’s sense of business ethics and business operations in the context of the organization’s culture? Specifically, what went wrong?
•What should have been the role and responsibility of company leadership (the Board of Directors, the CEO Ken Lay and others)? In what ways did key executive players (e.g., Lay, Skilling, and Fastow) work to negatively reshape the culture, and with what adverse consequences?
•How might Human Resource Management (HRM) have played a central role in setting the “moral compass” at Enron, helping to form and shape the organizational culture (perhaps avoiding the Enron debacle altogether)?
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