This paper discusses the corporate scandal and debacle associated with Enron and Arthur Anderson. It explores the topic from the development of Enron to the management culture and how it contributed to the downfall of Enron over the course of the 1990s. The purpose of the paper is to expand on some of the pertinent issues surrounding this case.
From the Paper:
"The collapse of Enron can be explained in terms of the functions of management. Planning, leading, organizing, and controlling were all deficient in the Enron situation, as is apparent from the discussion of the management (or lack thereof) techniques employed. The obsession with stock prices and bonuses, earning targets, terrify employees to meet goals, lack of oversight, threatening evaluations, and no training all contributed to a poor management culture that eventually undermined the corporation. 2. Some simple initiatives that might have improved the situation for Enron would have been easy for management to employ. For example, management should have kept a tighter rein on employee activities. A better, more responsible corporate culture should have been devised, and greater transparency should have been devised. 3. Arthur Anderson was so badly affected by the scandal at Enron largely because they had intimated their business practices too ..."
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