Question

What role did Enron’s corporate culture play in its eventual bankruptcy?

Answer 1

Enron corporate culture was related to low level of corporate governance and low level of Corporate discipline because they were engaged into manipulating the books of account by huge window dressing practices and such window dressing practices were intended at defrauding the investors into the company by not recording their expenses so the company were able to report a higher amount of profit because the managers and other management individuals were trying to inflate the profits by reducing the expenses of the company and window dressing it so they were indulging into low level of corporate governance and they were not aiming at protection of the interest of the stakeholders so they indulge into fraud and manipulations which were intended by doing window dressing.

So, it can be said that the corporate culture played an important role because they were manipulating the books of accounts so it was not likely to survive due to the intent of the management which was to defraud the investor and inflate books of accounts. Hence the lackluster approach of the corporate management was one of the major reason of of enron bankruptcy.