3. How might the culture of the company under the leadership of Lay and Skilling have contributed to Enron's ethical problems?
Enron's ethical problems were significantly impacted by the leadership of Lay and Skilling. They performed in such a way that only benefit themselves and their families ,which is exactly why Enron eventually fell through. Lay and Skilling obviously did not behave ethically and they had no ethical code to abide by. The mistake on Lay's part was when he found out about the risks associated with the partnership strategy. He was sent an outline from an Enron Official that informed him of all the things that could make his partnership project fall through. Yet, he still continued with the partenerships, and in 2001 he sold millions of dollars in his own holdings at Enron. Lay also made a point to make sure that his employees did not sell their stocks with Enron. The second mistake was when succesor Jeff Skilling decided to move out 15 percent of the employees that were considered "underperformers" every six months. He was lieing on performance appraisals and making a certain employees look better than they actually were.
Lay and Skilling had very poor decision making skills and if they would have been good leaders they would have done away with the parternships. I think that the worse thing that Lay could have done was to know about the risks that could take place and still continue what he was doing. If Lay and Skilling actually stopped to think about the importance of Enron as a business and the responsibily of being a manager these issues would never have taken place.
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4 comments:
I think Nerrisa is right. The fact that Lay and Skilling have no ethics makes them horrible leaders. No company could ever be run well if Lay and Skilling were running things. When your leadership is in question and so are your ethics your company is in a whole heap of trouble which we found out Enron was.
I agree with Nerrisa as well. I believe that Lay and Skilling were obviously under a lie, cheat and steal oath between one another. Their leadership/ethics, was none other than a front that only looked out for themselves and never took time to acutally take a look at the harm they caused to others. This display of bad ethics and poor leadership eventually came crashing down on the entire ENRON franchise.
Summarization- Mike Dombrowski
The best thinking in this group is from Nerrisa in the first response. She went pretty indepth about all the problems that arose and why they arose. She basically said that Lay and Skilling were running their company with no ethical code. She latter went into detail about how they sold millions in their shareholdings and how they altered and lied on performance appraisals. Nerrisa was the most indepth and therefore had the best and most critical thinking.
I think Nerrisa should learn some spelling and grammar before spewing out cliches.
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