Corporate Corruption: Culture of Enron
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4 word format
document in english
finance
school essay
date published 12/09/2007
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level : General public
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SummaryShareholder value was being diluted. It was worse than just being dishonest: stock options provided managers with strong incentives to get the value of their stocks up quickly - what mattered was not long-term strength but short-term appearances. Corporate officers responded to the incentives and opportunities. Over the last 15 years, executive rewards in America have soared, and so have stock prices of those companies.
Table of Contents- But managers have been discouraged from looking at the situation in this way.
- The incentives for managers, CEO's, and people of rank have been too great
- ow could America's seventh largest corporation suddenly declare bankruptcy when their stock price was so high' How did this occur?
- Because their auditor, Arthur Anderson, did not want to lose Enron as a customer, they did not question their practices and went along with what they said.
- Leaders and managers of Enron needed to understand how different types of corporate cultures may either help or hinder organizational efforts to improve performance and increase productivity
- The main way for promotion is loyalty to the boss, rather than being talented and skilled and being able to do a good job
- There is a lack of trust and cooperation
- There is a strong resistance to any kind of change in a certain culture
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