By failing to sustain an open relationship and trust with its employees, the executives were inevitably driving the company to its gloomy end. The top executives at the helm of affairs at Enron created a toxic corporate culture by using corruption, greed and deception. How a Toxic Culture Fed the Death Spiral of Enron This scandal led the company to file for bankruptcy in late 2001. One notable effect of this scandal on the corporate world was the dissolution of the Arthur Andersen accounting firm – one of the five largest audit and accountancy partnerships in the world as at that time.
The fall of this corporate behemoth just barely after a year it was named the seventh largest corporation in the U.S, led to the questioning of accounting activities and practices in many corporations in the U.S. In December 21, 2001, it collapsed in the most unusual way in circumstances that led the scandal to become the largest bankruptcy and stock collapse in history as at that time.īy the end of the year 2001, several reports revealed that Enron’s continued financial success was maintained by an internally systematic accounting fraud which has come to be called the “Enron scandal”. With revenues close to $101 billion in 2000, the company was named by Fortune as “America’s Most Innovative Company” for six successive years. energy, services and commodities company with headquarters in Houston, Texas. With a workforce of approximately 20,000 workers, Enron became the seventh largest corporation in the U.S by the year 2000. That organism is known as “culture”. Culture is a living, breathing thing that grows and develops from the inputs that are provided to it. It is the shared values, attitudes, standards, and beliefs that characterize members of an organization and define its nature. Culture is a funny thing, it always tells the truth. Culture is the unabashed, unveiled, purest representation of the atmosphere that drives your organization. For a company to thrive and be productive, it requires a healthy corporate culture among its workers and employers. But not all organizational cultures lead you to success. An example of how a culture that was cultivate with the ethical misgivings and a skewed moral compass is the energy giant, Enron. In any organization there exists an organism that requires nurturing to survive.
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