Enron Case Essay

1.What led to the collapse of Enron low deposit and Skilling?There were various reasons as to why Enron collapsed at a lower place Lay and Skilling. sensation reason Enron collapsed under Lay is beca consumption Lay simply did not practice what he preached. Lay did not live by his recruit of moral philosophy and neither did his corporation. not just that, plainly Lay and glide by management gave Andrew Fastow an exemption to the code of morality to continue doing business. Another reason that Enron collapsed, under Skilling, is that Skilling had a performance evaluation transit for all Enron employees that didnt express the code of ethics that they shouldve followed which caused employees to rank their peers lower as to enhance their own position in the firm.2.How did the travel by leadership at Enron debase the foundational values of the Enron codification of Ethics?The crystallize leadership at Enron undermined the foundational values by granting an exemption to Andre w Fastow to continue bringing in dirty money through his actions. Also, the top leadership allowed an un honourable farming of ethics by promoting to the employees that they had to make the numbers literally any way they could even if that meant to crack up the law.3.Given Kenneth Lays and Jeff Skillings operating(a) beliefs and the Enron Code of Ethics, what expectations regarding honourable decisions and actions should Enrons employees middling have had?Enron had a great and see code of ethics among its peers. Also, Lay and Skilling had ample operating beliefs since they also represented the Enron Code of Ethics. So, reasonably, the employees expectations should have fun to do the mightily thing morally and ethically as well as to uphold the respect, integrity, communication, and excellency Enron stood for.4.How did Enrons corporate culture elevate unethical decisions and actions?Enrons corporate culture promoted unethical decisions and actions simply bythe voracity that the top management showed and carried out. For example, Skillings execution of instrument of performance evaluations for all the employees was unethical because it was adapt to fire the lower one-fifth of the employees. non only that, but partnerships were mostly created only to hide the companies losses through the pension program.5.How did the investment banking community contribute to the ethical collapse of Enron?The investment banking community contributed to the ethical collapse of Enron because not only were they enablers but they also participated in the frauds as well. For example, Enron would apply loans called prepays to their operating cash flow. Also, Andrew Fastow was also allowed to use a tactic where a silly performing asset would be interpreted off the books and be sold defend to the company at profit after the end of quarters after the remuneration had been booked.