I.

Summary


Enron, once the nations seventh largest company, crumbled into bankruptcy in December
2001 after years of accounting tricks could as no longer hide billions in debt or make failing ventures
appear profitable. The collapse wide out thousands of jobs, market value and person plans Kenneth
Lay and Jeffrey Skilling convicted for their roles in the companys claps, lays convicted for
conspiracy, fraud and other charges. British Bankers and Andrew Fastow centered in a fraudulent
scheme. Enron may be gone, but it should not be forgotten especially by a new generation of
corporate leaders. Enron code of ethics issued in July 2000, this are Respect, Integrity,
Communication and Excellence. Enron collapsed so dramatically because of the failure of top
leadership, unethical behavior and the complicity of the investment banking community
Enron executives were charged with criminal act, fraud, money launching and insider were
among the most notable top level executives implicated in the collapse of Enrons house of cards the
activities of skilling, Fastow and lay raised questions about closely they adhered to the value of
respect, integrity, communication and excellence articulated in the Enron Code of Ethics. Bethany
Melean and fellow investigative reporter Peter Elking observed that the actions of Enrons leadership
did not match the companys expressed vision and valued.
Enron has been described as having a culture of arrogance that led people to believe that they
could handle increasingly greater risk without any danger. According to Sheoron Watkins, make the
number if you steal, if you cheat just dont get caught, if you do, beg for a second chance and you will
get me. Jeff Skiling implemented a very rigorous evaluation process for all Enron employees.
According to investigative reporters Mclean and Elkind One could practically pluck earnings out of
their air.



II.Problems

Combination of the failure of top leadership, unethical behavior and the complicity of
the investment banking community.
Actions of Enrons leadership did not much the companys expressed vision and
values.
Employees frequently ranked their peers lower in order to enhance their own
position in the company.




III.Cost




Numerous Enron executives were changed with criminal acts, making misleading
statements and corporate culture that supported unethical behavior.
Enron leadership engaged into several activities that challenge the foundation
values of the companys code of ethics, high market evaluation was essential to
keeping Enron from collapsing.



IV.Alternatives


As officers and employees of Enron Corporation; its subsidiaries and its affiliated
companies are responsible for conducting the business affairs of the companies in
accordance with all applicable laws in a moral and honest manner so that they can
do their responsibility in a right way for the companys achievements.
As a employee, everyone have the right to show their skills to do their work better for
the goal of company will be achieve, fairly competition is the best way to test your
capability.



V. Choose Alternatives:


Leaders should not encourage people to break the rules and inflate values of
contracts even though no actual cash generated and deals on the companys book.
VI. Recommendations:
Officers and Employees responsible for all applicable laws in a moral and honest
manner and required them to follow the rules that implemented by the company, this
are Respect, Integrity, communication and excellence which enjoyed a reputation of
being fair and honest.


VII. Learning Insight


In the case, Ive learned how does the company of Enron crumbled into bankruptcy
because of the activities doing by the leader of the company, what behavior they do
to come in this bankruptcy. This Enron code of ethics make all of us to discover just
how good we can really be contrary for the numerous from executives were charged
will criminal act, including fraud, money laundering and insider trading. I understand
what are those reason how could Enron have to collapsed to dramatically.