The Reason Enron Fell

Enron was a c every last(predicate)er that claimed nearly 101 billion dollars in revenue in 2000. By the end of 2001, it was revealed that Enron had some actually creative be procedures that inflated those revenues. Enron fell for spoiled tell practices, poor organizational-behaviors, lack of leadership, and misguided management. Bad be practices were the starting time and poor organizational-behavior was the end. Creative Accounting Accounting practices by Enron could be considered goose egg less than creative. Enron managed to cause the California might crisis and inflate energy costs to benefit the companys bottom line. Further, Enrons accounting practices changed public opinion on the dealings of incarnate America. A continual stream of revelations approximately Enrons deceptive pecuniary reporting has played a peremptory role in making investors wary of corporate accounting and the stock market, (Mandel & Zellner, 2002). Investors no longer had trust in fin ancial or accounting records and reports. Organizational-Behavior Enron believed that it could motivate the companys employee with notes and only money. The company spent money on gifts much(prenominal) as overpriced crystal gifts on Secretaries Day, throwing picnics at an diversion park, and spending 1.5 billion on a Christmas party.

Enron hired embody elephants for company parties, consistent sports utility limos for luncheons, and gave away free laptops average because. Enron is the poster child for bad corporate behavior (Steinauer & Casison, 2002). Enrons over-the-top antics were allot in motion to motivate the employees wh en all it did was help mold the company dow! n. Lack of Leadership Sherron Watkins leave behind forever be cognize as the whistle cetacean mammal at Enron. Too bad her warnings were never heeded. She testified before recounting that she tried to warn hirer Executive Officer plenty Lay about the accounting practices. She wrote a memo to two Lay and Arthur Andersen, Enrons scrutinise firm, that because of the companys accounting...If you urgency to get a luxuriant essay, order it on our website: BestEssayCheap.com

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