Business Failure

Enron was an energy marketing corporation that suffered severely from a serious financial scandal, which involved Enron and its accounting firm.   The scandal consisted of the discovery of highly irregular accounting procedures and practices which took place during the 1990s.   These irregular accounting procedures and practices included the manipulation of stock prices as well as loans to shareholders.   As a result, this caused Enron to abruptly file bankruptcy by December of 2001.   Based on the sordid background of this particular scandal, there were some serious executive management and leadership issues that were also involved throughout the Enron scandal and beyond with the revelation of the scandal.   The following information will identify the management and leadership failures which led to the Enron scandal, as well as how these failures could have been predicted well before its demise.   In addition, it will also be revealed how proper organizational behavior of management and leadership could have greatly impacted the structure of Enron positively.
Enron’s executive team was trying to create and promote an enterprise which would increase vast wealth amongst their shareholders.   However, when it was revealed that Enron’s stock prices were less than desirable, certain aggressive accounting methods and measures were required in an attempt to shore it up and as quickly as possible.   To make Enron’s shares appear more favorable, the executive team relied on an increased amount of new capital, but had to conceal the risks to the new investors in many underhanded ways such as with creating bogus companies.   Once Enron began this new creative type of accounting operations, there became the need to continue increasing this type of deception with each new fiscal year.   Enron wanted to make sure they kept moving forward at all costs without concern to how it may affect its investors.   This is exactly where a controlled system of checks and balances were seriously...