Question

1. Tell me about 5 things you now know about Enron.

2. From what you have seen in the Movie, does Enron take a shareholder or stakeholder approach to social responsibility? Provide 2 examples of Enron's actions that support your position?

3. Of the motivation alternatives discussed in class, which technique did Enron use to motivate it's employees? Provide an example to support your position.

4. Besides his title of President, discuss why Ken Lay would be considered a leader?

5. Besides his title of CEO, discuss why Jeff Skillings would be considered a leader?

Answer 1

5 Things about Enron:

1. American energy company Enron Corporation was based in Texas. It was founded in 1985 when a merger took place between Houston Natural Gas and InterNorth.

2. Enron was a major electricity and natural gas company having 29,000 employees working, having a revenue of $101 billion in the year 2000.

3. According to Fortune, For the six consecutive years, it was Americas Most innovative Company. In the year 2001, Enron had become an example of Corporate fraud and corruption, known as Enron Scandal.

4. Enron Scandal came in front of the eyes of public in October 2001, when the company became bankrupt. This was the largest bankruptcy in the history of America at that time. Also, the company has cited the biggest failure of Audit.

5. With this scandal, questions started arising for the accounting practices of many companies in the United States. This scandal affected the business to a greater extent by causing the dissolution of the major accounting firm, Arthur Andersen, which at that time was Enron’s major auditing company for years.