The Impact Of Enron Corporation
Culture, the life force of an organisation is where the real values, practices, beliefs, behavioural norms and customs exist. Edgar Schein, a scholar on organisational culture believes that the organisational culture are shared assumptions and beliefs of a group or organisation about the world and the group’s place in it, the human nature and human relationships.
The nature and content of an organisation has a strong impact on its organisational culture.
Leaders play an important role in shaping the culture of an organisation through their visions and values, role modelling and attention, and reaction to crises - the programs, systems, structures, and cultural forms that they implement.
Enron Corporation
“I don’t want to be rich. I want to be World Class Rich!”
-Kenneth Lay, former Chair & CEO, Enron Corporation
After the shadow of the September 11, 201 terrorist attacks the fall of Enron in 2001-2002 astonished the business community, infuriate the public, and stunned the politicians who viewed Enron as representing the best corporate America. This is when the infamous Enron scam was unveiled, which eventually led to bankruptcy of Enron Corporation, an American based energy company.
According to Edward Schein,, the organisational culture at Enron was a major reason for ethical misbehaviour amongst its employees specifically, top management. The leaders of an organisation play a critical role in shaping the organisations’s culture. Schein’s model of five primary
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