Enrob Essay

913 WordsOct 2, 20144 Pages
1. What led to the eventual collapse of Enron under Lay and Skilling? All the fraud activities conducted by Lay and Skilling and bad corporate culture led to the Eventual collapse of Enron. Both were aware of the Enron Code of Ethics but they did not follow it. Kenneth Lay former CEO was indicted on 11 criminal counts of fraud and making misleading statements. Jeff Skilling was indicted on 35 counts of wire fraud, securities fraud, conspiracy, making false statement on financial reports, and insider trading. Hence both were responsible for collapse of Enron. There are a several reasons that led to Enron’s collapse namely; a corrupt leadership at the top, violation of laws that were not impose by the company’s CEO, and Lack of regulation Enron had one of the best ethics code in the industry. First, not work out with written ethics and compliance codes clearly describe how was the company collapse, moreover corruption from leaders at the top and middle level of organizations is a recipe for disaster. Second, probably no code or law can prevent the rebel intention with the available means for criminally minded and greedy CEOs, Fastow and other top-level officers from defrauding and stealing from their organizations. Third, effective communication, monitoring, and auditing of the organization’s legal and ethical compliance standards and procedures must be enforced. 2. How did the top leadership at Enron undermine the foundational values of the Enron Code of Ethics? Key players among the top leadership were Andrew Fastow, Jeff Skilling, and Ken Lay. Each of these individuals contributed to undermining Enron’s foundational values. Enron numerous executives such as former CEO, former chief financial officer and treasurer who forced company to the bankruptcy were found guilty after the bankruptcy. They were engaged in money laundering, fraud and conspiracy.

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