August 13, 2012
The rise and fall of any organization hangs in the balance based on several components. It can often times relates to the individuals employed, unethical practices, or a lack of knowledge in changing trends. However, the case may be responsibilities of any failures or successes are usually relates to a particular action not taken or taken too far by certain key players within the organization. In this instance, Enron’s actions or lack of action by CEO’s, managers, and leaders of the multimillion dollar corporation led to the collapse of its business intienty. Enron was initially established by Kenneth Lay from merging two companies gas/electricity together in 1985 (Enron Scandal-Wikipedia). It was the price trend and savvy business deals that allowed this organization to develop into the mega-giant of natural gas and electricity. Monopolizing the energy market Enron was able to establish higher prices that in turn increase its growth and revenue (Enron Scandal-Wikipedia). As the top competitor in the industry Enron sought various business ventures, capital gains, and innovative practices. Most of the ventures were profitable and more were not. Nonetheless, Enron sought to only report what was to be perceived as the best practices of the company. In these instances it was unethical business practices, poor monitoring of daily operation by CEO’s, management, and other leaders from certain department that caused the business to begin to unfold. As many as 16 top executives of Enron covered up the mismanagement of funds, poor accounting practice, and unethical business decisions. With cover-up no longer redeemable, Enron was forced to file for bankrupt and later go out of business. This left many employers and shareholders wondering how and who to blame. Looking back over the financial aspect it was realized that mismanagement of investment and revenue...