Leadership Failures of Enron

Many have heard of the Enron Scandal of 2001. A scandal, by definition, is an event that involves allegations of wrongdoing, disgrace, or moral outrage. In other words, a scandal is ca applyd by shortcomings in ethics. Enrons Ken Lay, Jeffrey Skilling and Andrew Fastow from each one engaged in unethical practices in their various lead positions at Enron and caused thousands of Enron employees and investors to lose their savings. (Smartest) Kenneth Lay showed all the signs of a transformational attractor early in his career. Lay began as and forever remained a staunch advocate for free markets and deregulation of markets. He had a vision of a free energy market that would be more profitable than the encumbered government-regulated market. (Jelveh; Biography) Kenneth Lay made use of considerable political clout derived from his friendship with the Bush family to further his deregulation agenda. (Smartest) Lays vision of a deregulated market, it would seem, would bedim his ethical judgment in the future. Lay seemed to have no trouble moving up in the business world. In 1974, he became an executive of the Florida Gas familiarity and became president of the company in 1981. In 1982, he returned to Houston to run Transco Energy Co., and in 1984 took the helm of Houston Natural Gas.

Houston Natural Gas then incorporate with InterNorth in 1985, and the combined company became Enron with Lay as CEO. (Biography) The offset printing signs of Lays ethical shortcomings came in 1987 with what became known as the Valhalla Scandal. Lou Borget, a trader of Enron Oil Trading, was convicted of money laundering and fraud cost Enron shareholders about sixty-four million dollars. Lay testified that he was blow out of the water by the illicit tactics used by his petroleum traders, but evidence, including the word of the former Enron Oil vice president Mike Muckleroy, seems to indicate that Lay understood what was happening the livelong time. Auditors told Lay that his oil traders were manipulating earnings... If you want to get a enough essay, order it on our website: Orderessay

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