but as the scandals of the last decade mounted — Enron, WorldCom, ..
This article will not focus on the accounting scandal—the mark-to-market accounting, the special purpose entities and the hedge funds that Enron established to prop up earnings—but the human side of a company which experienced tremendous success for a short time and then colossal failure. The focus will be on the organization’s top managers, their roles and behaviors and how these contributed to managerial successes and mistakes. This article will examine how these managers shaped the organization’s corporate culture and changed management strategy which was the foundation of the organization’s early successes and later failures.
Worldcom Background Free Essays - StudyMode
Many of Enron’s top leadership as well as their employees had a constellation of very similar personality characteristics, educational backgrounds and life experiences. These corporate leaders came from families that were not well-off and they had tremendous motivation and drive to overcome the past and make a better life for themselves in the world. Enron Chairman and CEO Ken Lay was the son of a Baptist preacher and had been poor all of his life. His parents had little formal education, but Lay dreamed of the world of business and went on to earn a Ph.D. in economics (Gibney, 2005). Sherron Watkins, a company vice president, was born in Tomball, Texas, and was raised by a single mother who taught business at the local high school and encouraged her to go into accounting, which Watkins did, earning a master’s degree in accounting (Swartz & Watkins, 2004).
The water industry was a regulated utility in most places in the world and the possibility of deregulation offered an opportunity for Enron to capitalize on its knowledge of the profit opportunities under deregulation.