Reviewing the case of Enron

Description

            In the last few decades, the world has seen several internal control corporate failures, which have resulted to huge public scandals to date. Some of these scandals have made headlines and offered a guide on how corporation should set checks and balances to mitigate the recurrence of such failures in future. One of the notable cases that made headlines is the case Enron an American Energy company that was based in Houston, Texas. Not only was Enron’s case the largest form of bankruptcy the world had ever seen, but it has been viewed as among the biggest Audit failure. The scandal brought about political implications since Enron was considered one of the organization at the fore of supporting President George Bush candidacy to presidency at the time. At its collapse, the company lost seventy four billion dollars with investors and employees losing their job positions.

Analysis

Company’s Culture

            As Bierman (49) notes, Enron’s culture had principles noting that its being is about pushing individuals and all its resources to the limit. This meant pushing the business practices, existing legal frameworks and the personal behavior of everyone who was involved with the company. In effect, this is what characterized its rise and later its fall. The risks assessment and control group in the organization played an integral role to instituting this principle by researching on the existing projects and analyzing how they would be applicable to Enron’s role. There was a deal approval sheet, which was a special form of evaluation to understanding the workability of these deals. The company’s leadership with the guidance of Jeff Skilling fashioned an environment of leadership focusing on creating a gap between the interests of the clients to address a market needs. According to Bierman (51), Jeff Skilling was able to fashion