Enrons Business Failure Paper - 986 Words

Enron Business Failure Paper Abstract The following paper will explain the reason of why Enron as a company failed. It will compare and contrast the contributions of leadership, management and organizational structures to the failure. Enron, was the worlds top electrical, communications, pulp and paper, and natural gas company. Unfortunately, in late 2001 the company started to unravel. Enron was on the brink of bankruptcy and even an attempt to be bought out by a smaller company called Dynegy, could not save Enron. The company was in financial ruin as their stocks dropped from over 90.00 dollars to practically nothing. A scandal was revealed that involved the companies own accounting firm, Arthur Anderson, and Enron. It was†¦show more content†¦Even a code of ethics for senior corporate financial officers is now a requirement of the law. Such methods include internal control, corporate governance, and code of ethics.† (Sarbanes-Oxley Act, 2009), (Chron.com. 2009)Corporate governanceUnder the new structure the board would maintain and develop a business structure that would make certain cooperation and collaboration between employees and management will pursue objectives and goals of the organizatio n instead of what management wants to do. (CNN Money.com, 2009)Code of EthicsUnder the new structure, Management would be responsible for the code of ethics and to encourage the significance of corporate morals and standards of ethics. By doing this, will push management to operate in a leadership manner and not just overseeing internal control systems. By continuously being compliant in all areas of power will help rebalance and reshape corporate authority, encourage ethical corporate behavior, prevent management fraud and guarantee accurate account reporting. (CNN Money.com, 2009)Internal controlIn the past, molding the employee’s actions and operations was the main focus of management’s internal control. Nonetheless, in the latest configuration, the employees would now have control to stop improper overrides formerly handled by the managers. GivingShow MoreRelatedManagement Organization1074 Words   |  5 PagesManagement Organization In any business, leadership management’s responsibility is to provide a safe and comfortable working environment, using appropriate communication skills, operating with the highest possible ethical standards, being fair, provide compensation to the employees increasing motivation for the employees to work at his or her fullest potential. This paper will discuss Enron, and the business failure that occurred. At one time, Enron was one of the largest energy providers in AmericaRead MoreBusiness Failure Paper1045 Words   |  5 PagesRUNNING HEAD: Enron’s Failure Enron’s Failure Stacey A. 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