Organization Leadership-Enron

Natalie   Rivera
LDR 531-   Organizational Leadership
March 1, 2011

Enron was an energy corporation involved in electrical communications, pulp and paper, and natural gas. In 2001 the company found itself facing a financial scandal that consisted of unethical financial practices, and procedures such as manipulation of stock prices.   Enron was the leading energy company in the world and become “a popular symbol of willful corporate fraud and corruption” (Wikipedia, 2010). The core of this scandal were organizational behavior, leadership and management failures, which having taken the proper actions Enron’s failed empire could have been prevented.
Enron’s failure began from its top management and filtered down to the employees.   Enron’s executives wanted to obtain more wealth, and as their solution they veered towards manipulating stock prices and accounting books.   With the assistance of Arthur Andersen auditors, a creative yet unethical practice began to make stocks appear more rewarding to their shareholders and stakeholders both present and potential investors .   Enron’s executives and auditors accomplished this, and by doing so they found themselves obligated to continue altering stocks every fiscal year.  
Throughout the years, these accounting practices were possible to execute do to the lack of social and corporate responsibilities on behalf of the leaders directing this company, and consequently its subordinates.   Audit, analysis, and review of all transactions that took place, especially when working with excessive amounts of money, should have been a priority to the committee and Board of Directors assigned at Enron. The fact that the numbers projected success, lead auditors to believe it was not necessary to investigate.   Action was not taken to ensure processes, and procedures were being done ethically, and to corporate and business standards.   The leniency and lack of supervision on behalf of the board, supervisors, and auditors is an essential...