Enron: Questionable Accounting Leads to Collapse

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- Transparency within the organization

Threat

- Questionable Integrity and Honesty of Top Management.

- The continuous corporate culture in the organizations .

VI. ALTERNATIVE COURSES OF ACTION

1. The owner should monitor and supervise the flow of operation and verified every transaction of the executives and board of directors.

2. Implementation of code conduct in the entire organization must be observe

3. Making right the corporate culture that will promote transparency and create a fair competition among employee’s and executives

4. Trace all transactions that cause bankruptcy of the company and accept the liability whoever the person involve.

VII. CONCLUSION

After reading the case of Enron, strong implementation of code of conduct should be observe not only to the rank and file employee but also to the top management since they have the biggest responsibilities and accountabilities to the company .They should be the one will follow the policy .The rise and fall of the company are not only depends on the performance of the employee , its client but also how these top management perform in the company. All transaction should be reported and monitoring give the right incentives to those who work to benefit the company.

VIII. RECOMMENDATION

Morally questionable acts were made within the organization including the top management ,executives employee and even traders that led the bankruptcy of the ENRON, I strongly recommend that there changing company’s culture should be implement. Although it’s takes time to implement, changing the culture can make the Enron rise again from Bankruptcy. Setting standard in giving incentive and reward this to the employees who really deserves.

Towards the top management (Lay, Skilling Mark and other executives) the reason behind this scandal . A lesson that marks not only on Enron itself but in the entire business industry. Transformational Leadership ,Transparency ,following the Code of Conducts, and create a healthy competition in the Organization should be implemented.