Enron Case Study

2799 Words12 Pages
Enron Case Matt Morell Dr. Setley Business Ethics and Social Responsibility 28 October 2010 Executive Summary On August 15, 2001 Kenneth Lay was resumed the position of CEO of Enron Corporation after the resignation of former President/CEO Jeff Skilling. Lay was left to deal with an accounting scandal that threatened the wellbeing of the entire organization. Once background information about Enron is discussed, to find the optimal solution to the problems within the Enron Corporation, an Ethical Decision Making Analysis will be utilized. The primary issue will be defined along with the key stakeholders that are affected by the issue. The goals of the solution will also be identified before three solutions to the issue are discussed and evaluated. After analysis of Ken Lay’s actions in response to the issue, it is concluded that his decision was not very effective. There are two other alternative solutions to the issue that are discussed and the best chosen solution is then compared to the one implemented by Ken Lay. Finally, Ken Lay’s ethical rationale with his decision is then discussed along with the ethical rational behind the optimal solution to fix the issue with Enron. Enron Corporation is an energy company that supplies natural gas to utilities. A Merger between Houston Natural Gas and InterNorth in 1985 created the company and Kenneth L. Lay became the man in charge. Enron owned a large amount of pipelines that made business transactions of the natural gas convenient. Deregulation of the energy industries in the 1980’s helped Enron gain a competitive advantage over other corporations in the industry (Lawrence, 2003). Utility companies were now able to compete with one another instead of being regulated by the government. Once Enron’s success started to plateau in the Natural gas industry, they decided to

More about Enron Case Study

Open Document