Enron ethics and organizational culture case study


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Include at least one outside source supporting your answers. Explain your answers in words.

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Respond to at least two of your fellow students' postings. My tutorial includes two answers to this DQ and you should use any one of the two. Enron ethical meltdown begins with the foundation of ethics and culture the organization sets forth. Leaders are responsible for creating the foundation and to lead by example.

When the leaders are not following the ethical standards, employees begging to think this are acceptable behavior. Messick and Bazerman argue that potential consequences are often ignored because of five possible biases: ignoring low probability events, limiting the search for stakeholders, ignoring the possibility that the public will find out, discounting the future, and undervaluing collective outcomes.

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Selection-During the selection of the employees, he should have selected those who have ethical behavior already. They should also have ability to make their self decision rather than being sheep of a herd. Ethics training-He should have provided proper ethical training to all the employees so that they won't turn towards being unethical. Performance appraisal-Performing appraisal frequently would have made employees perform.

Reward and punishment system-CEO should have stated reward and punishment system.


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  8. Hard worker would perform even harder while unethical would get lesson of no repeating the same mistake. Managing employee discipline and privacy-Being a CEO, he should respect the privacy of the employees too.

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