How Enron’s Corporate Culture Contributed to Its Insolvency (Case Study Sample)

Enron Case Study
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How did the corporate culture of Enron contribute to its bankruptcy?
Enron’s corporate culture contributed significantly greatly to its insolvency. The company adopted an arrogant and aggressive corporate philosophy that set up the company for failure. The company projected itself as a world leader in its industry, and no competitors could match its success. Employees were aggressively forced to meet certain set targets, and whenever they failed, they were ejected from the organization. The system was designed such that ongoing assessments of worker performance would throw out those ranked bottom 20%. The workers had no option other than to compete with each other aggressively. For workers, delivering bad results could mean the end of one's career at Enron. It became easier to bury bad news to ensure one survived the aggressive retrenchment policies. The leaders became proud and believed that their employees were high performers who could take risks with few dangerous outcomes (Hosseini & Mahesh, 2016). The leaders believed that the culture established helped workers perform optimally and reach their full potential. It ensured the company adopted an unethical work culture that made it vulnerable to harmful practices. During Enron's business operation, the critical thing was to make money for stakeholders, which needed the company to always project profitability.
The company had a policy of doing high-risk transactions, and the business situations often met could be profitable for the