Enron Code Of Ethics

735 Words3 Pages

First of all, I think the final collapse of Enron on December 2, 2001, under Lay and Skilling was because of their leadership style and corporate administration issue that prompt to the corporate culture of the organization. The failure of the company was not only caused by one person’s doing but whole top management from the beginning. As the Chinese saying goes, “paper cannot hold a fire.” Hence, the mistakes they made accumulated day by day and finally end up with huge debts and bankruptcy. The things which had Lay and Skilling did is difficult to show both of them were violating laws. In fact, it is both of them that formed the corporate culture and bring in their own beliefs and instill into the company. Enron’s code of ethics was based on respect, integrity, communication, and excellence. A company’s ethic code is extremely important as it will keep the company not engage in business activity which violates the rules. However, Lay and Skilling did not follow that ethic code. The core of these code of ethics was …show more content…

Workers in Enron were being supported to think out of the box and being creative. They were also allowed to break the rules and increase the value of company although there was no cash generated. Soon, many employees in the company started to use this method to cover and hide losses. Without anyone knowing the company was losing money, they did not have to bear the consequences and responsible for their mistakes. The integrity of Enron was contaminated as a result end up if anyone did mistakes and no one finds out, keep quiet. This is one of the reasons why Enron will collapse. As the small losses accumulate day by day, it will become a huge debt for the company. Enron seemed to be more profitable than it really was by keep hiding the losses ("Enron Scandal: The Fall of a Wall Street Darling",

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