When the Enron Corporation went bankrupt in 2001, this collapse was the largest corporate failure in history, and the name has since become synonymous with corporate fraud. Enron's board of directors failed to monitor, question, or analyze Enron's management and business practices, and billions of dollars' worth of unscrupulous activities were conducted to make Enron look more financially stable than it was. Though the board had access to evidence that something was wrong with Enron's business practices,a culture had developed in which conformity was encouraged and diverse views not acceptable. What might Enron have done differently to prevent this kind of culture?

Question

Quizplus · Accepted Answer

Enron could have benefited from having an impartial leader, bringing in outsiders for fresh perspectives, and fostering an environment where dissenting opinions were encouraged, all of which could have helped prevent the culture of conformity and lack of oversight.

When the Enron Corporation Went Bankrupt in 2001, This Collapse