A DISCUSSION AND ANALYSIS OF ENRON AND ITS FINANCIAL DEBACLE

As stated in Module 5 Case, events surrounding Enron during early 2002 clearly presented ethical problems for management, some political problems for public officials, and of course some financial problems for investors. Overall, I am concerned with all of these, but more particularly the financial problems for investors. Similarly, group processes is key to understanding the corporate culture at Enron, but how this debacle came about. Throughout the course of this research paper, it is also the intent of this author to characterize Enron’s corporate culture.
According to John Schwartz, many who love saying that much of the change in Enron’s culture coincided with the rise of Jeffrey K. Skilling, who many called a brilliant visionary, he was promoted to president and chief operating officer in 1976. It was Skilling who had been largely responsible for Enron’s transformation. He helped turn Enron from a large but unglamorous nature gas company in the mid 1980s into a kind of hedge front that created and ran markets in energy and a dizzying array of commodities, including high speed internet access and ever weather risk. Unfo...