case questions

Application Case: Enron, Ethics, and Organizational Culture

14-15: Based on what you read in this chapter, summarize in one page or less how you would explain Enron’s ethical meltdown.

14-16: It is said that when one securities analyst tried to confront Enron’s CEO about the firm’s unusual accounting statements, the CEO publicly used vulgar language to describe the analyst, and that Enron employees subsequently thought doing so was humorous. If true, what does that say about Enron’s ethical culture?

14-17: This case and chapter had something to say about how organizational culture influences ethical behavior. What role do you think culture played at Enron? Give five specific examples of things Enron’s CEO could have done to create a healthy ethical culture.

Continuing Case: Carter Cleaning Company – Guaranteeing Fair Treatment

14-18: What would you do if you were Jennifer, and why?

14-19: Should a disciplinary system be established at Carter Cleaning Centers?

14-20: If so, what should it cover? How would you suggest it deal with a situation such as the one with the errant counter people?

14-21: How would you deal with the store manager?

Solution Preview

Enron corporation was an entity in New York that dealt as an intermediary between the suppliers and consumers of whole sale energy products such as natural gas and electricity. This corporation was fairly doing well according to the public where it was reported that it made revenues as far as 111 billion dollars during 2000. Contrary to this the company then filed for bankruptcy during late 2001.

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