ENRON: THE SMARTEST GUYS IN THE ROOM
Kenneth “Ken” Lay, the founder of Enron Corporation grew up from a poor family. His father was a Baptist ministry. Ken Lay works many jobs at the same time. He was aiming to make wealth for himself and for his family. From his childhood, he learned the value of hard work to earn a living and to achieve his ultimate goal (to be rich). He actually did work so hard, been working with different companies and upgraded his skills and education in obtaining Ph.D. degree in economics. When he was at Enron, he displayed hard work and ambitions like when he was a child. Skilling states that he was only acting in the interest of the shareholders. His unethical behavior does not benefit the shareholders. If he was acting in the interest of the shareholders, he wouldn’t have deceived them. Showing wrong figures to show that the company is profitable to increase the stock value and let the shareholders invest more with Enron is a big deceive while in fact, the company was not doing well. His best interest was on how he can cheat more people to gain more money from their investments. Ken Lay is said to have “wrapped himself in the cloak of moral rectitude”. This is the image of some people who holds moral virtue and rightness of principle of conduct. This behavior creates more trust as long as your actions back it up or at least appear to back it up. It’s definitely a way for people to feel close to you, trust you or relate to you. That was the image of Ken Lay when he was at Enron. Enron didn’t learn from the Valhalla scandal in 1987 because Jeff Lay was too confident when he said that Enron had been able to recover from that oil scandal that could have taken the company down and there was no significant adverse impact on the future profitability and success of Enron. He didn’t take action or punish the perpetrators. In fact, he defended the two traders at the heart of the scandal, even in the face of allegations that they had...
Please join StudyMode to read the full document