Enron
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- Date Submitted: 09/01/2010 06:49 PM
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Enron
Enron was an organization that was based out of Houston, Texas. The mega-organization was an employer to nearly 22,000 employees. Prior to calling Houston its home, Enron began the business in Omaha, Nebraska. As one of the suppliers of natural gas and electricity, Enron distributed these commodities nationwide.
Named by Fortune Magazine as America’s Most Innovative Company for six years running, Enron became one of the top 100 companies to work for. The organization appeared to be demonstrating all the key ingredients of operating as a model organization. That vision became blurred in 2001 when Enron became a defunct organization because of an accounting scandal that resulted from unethical and inappropriate accounting practices.
Fraudulent accounting procedures and misappropriation of funds were occurring between Enron and the Arthur Anderson Accounting Firm, which was once known as one of the largest accounting firms in America. One example of the fraudulent accounting practices is the large number of off-shore accounts that Enron created to evade taxes being assessed on the business’ profits. Better known as currency movement or money laundering, this vehicle was created to hide Enron’s alleged losses. Hundreds of millions of dollars were in-turn being funneled from these off-shore accounts to Andrew Fastow, Chief Financial Officer, other officers at Enron, and their family members.
Enron Page 3
Leadership Fails
When wearing the leadership hat, leaders have a responsibility to be an example and to therefore lead by example. Leadership styles have a big impact on the success of an organization. Leadership, if the leader is clever, comes with the ability socially to influence
others’ decisions in an effort to support the vision of the leader and the organization (Yukl, 2006).
Directors and officers have fiduciary responsibilities they must uphold. The duty of obedience, the...
Enron was an organization that was based out of Houston, Texas. The mega-organization was an employer to nearly 22,000 employees. Prior to calling Houston its home, Enron began the business in Omaha, Nebraska. As one of the suppliers of natural gas and electricity, Enron distributed these commodities nationwide.
Named by Fortune Magazine as America’s Most Innovative Company for six years running, Enron became one of the top 100 companies to work for. The organization appeared to be demonstrating all the key ingredients of operating as a model organization. That vision became blurred in 2001 when Enron became a defunct organization because of an accounting scandal that resulted from unethical and inappropriate accounting practices.
Fraudulent accounting procedures and misappropriation of funds were occurring between Enron and the Arthur Anderson Accounting Firm, which was once known as one of the largest accounting firms in America. One example of the fraudulent accounting practices is the large number of off-shore accounts that Enron created to evade taxes being assessed on the business’ profits. Better known as currency movement or money laundering, this vehicle was created to hide Enron’s alleged losses. Hundreds of millions of dollars were in-turn being funneled from these off-shore accounts to Andrew Fastow, Chief Financial Officer, other officers at Enron, and their family members.
Enron Page 3
Leadership Fails
When wearing the leadership hat, leaders have a responsibility to be an example and to therefore lead by example. Leadership styles have a big impact on the success of an organization. Leadership, if the leader is clever, comes with the ability socially to influence
others’ decisions in an effort to support the vision of the leader and the organization (Yukl, 2006).
Directors and officers have fiduciary responsibilities they must uphold. The duty of obedience, the...