The culture of the Enron Company lead to many ethical problems throughout the downfall of this company. One of the first cultural problems started right when Kenneth Lay began to run the company. Lay instead of fixing or making the scam public he continued on with the unethical ways of the former CEO Jeffrey Skilling. Another cultural flaw within Enron was when a employee Sherron Watkins sent a memo to Lay informing him about the risks of this unlawful partnership. Watkins warned Lay that Enron could implode in many accounting scandals. Lay did not acknowledge these problems and continued on with the partnership and the scandal.
More cultural problems came about when Lay started to benefit his family handsomely through Enron. For example: when they used his sister’s travel agency as the corporate travel company. These and many other cultural flaws in the Enron Company led to many unethical acts.
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3 comments:
I agree with Adam's answer to question #3, Once Kenneth Lay took over the company he should have made the scam public so that he would not become liable for anything that happened before his time. He choose greed over ethics and it ended up taking him down. Lay knew the risks and gambled with it and got caught.
I also agree with Adam's answer because Kenneth Lay did make the mistake by not fixing the scam. Lay did not try to resolve these problems and he continued on with the partnership/scandal. The example Adam gave about Lay benefitting his family through Enron answered the question perfectly.
I feel as though Jason had a great comment about the Kenneth Lay scandal, saying that " Once Kenneth Lay took over the company he should have made the scam public so that he would not become liable for anything that happened before his time". Jason went straight to the point that Kenneth Lay made one mistake after another and in the end, basically, caused him and the whole company to come crashing down.
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