Enron Case Study

Enron

1. How did the corporate culture of Enron contribute to its bankruptcy?

There was an overwhelming aura of pride, carrying with it the deep-seated belief that EnronЎ¦s people could handle increasing risk without danger. The culture also was about a focus on how much money could be made for executives. For, example EnronЎ¦s compensation plans seemed less concerned with generating profits for shareholders than with enriching officer wealth. EnronЎ¦s corporate culture reportedly encouraged flouting, if not breaking, the rules.

2. Did EnronЎ¦s bankers, auditors, and attorneys contribute to EnronЎ¦s demise? If so, what was their contribution?

„X EnronЎ¦s auditor, Arthur Andersen was responsible for ensuring the accuracy of EnronЎ¦s financial statements and internal bookkeeping. AndersonЎ¦s reports were used by potential investors to judge EnronЎ¦s financial soundness and future potential before they decided whether to invest and by current investors to decide if their funds should remains invested there.

„X Former CEO Jeffrey Skilling, widely seen as EnronЎ¦s mastermind. He