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?

*THE MOVIE*

Answer 1

Five things about Enron

1. Enron was founded in 1985 and was a company that largely was in the energy sector.
2. The company was based out of Houston, Texas
3. The company went bankrupt on December 3, 2001 due to several frauds and financial misconduct that the company was involved in.
4. The company was founded by Kenneth Lay
5. Fortune magazine had called Enron the “most innovative company” for 4 straight years

Enron - Stakeholder Approach

Enron definitely takes the stakeholder approach and this is clear from the following illustrative examples.

For its employees, Enron used to be very generous in handing out incentives and bonuses, which in some cases were to the tune of 100% of their salaries.

For smooth functioning of its businesses, Enron always maintained a healthy relationship with the upper echelons of the American polity. Generous campaign donations ensured that Enron was in the good books of the senior Bush administration

Since I am not sure which motivation techniques were discussed in your class, I will not be able to answer this question.

Both Kenneth Lay and Jeff Skilling could be considered as leaders since they developed a cult following around themselves. This they could manage by creating exaggerated stories of opulence and adventure so that employees of Enron themselves could also aspire to reach similar levels of extravagance. There was also a strong culture of incentivising performing employees (although the legality of activities never received much scrutiny from senior management). Such practices made employees of Enron, loyal subjects.