Corporate culture is crucial in any organization. Its awareness adds a bonus in generating sustainable expansion and returns. That’s imperative, and one of the best ways to illustrate a corporate culture is to take for example a company, which consists of the total number of people, who are chosen and rewarded by this company, for a kind of persona they had. And as soon as an organization is short of picking uprightness in leadership, it’s doomed to fail.
Enron was known to have an insistent operating culture and hard performance assessment for its employees and also for endorsing employee ability. It was known to have the best working environment. It based its values, strength and constraint on its employees. Enron’s values were respect, honesty, and excellence. Although these were optimistic values, they were not objectified by a valid consideration to corporate uprightness and the foundation of getting more clients. These values expressed the well being of its employees as they were given the best health benefit, a concierge to take care of their errands while they are at work, a gym and a cafeteria. The executives were rewarded with bonuses to cover their family vacations. Apart from these unusual perks, their pay was expected to increase in amount through Enron stock, because it was fixed to a compensation program.
Enron was also described as having a conceited culture that guided people to think that they may well handle progressively bigger threat, without stumbling upon any risk. Enron’s corporate culture gave the impression of wanting to achieve more undertaking, which was more than it could handle. Its systems of supervision, moral disclosure and company’s main concerns were inconsistent. Enron’s corporate culture best epitomizes the principles of risk taking, insistent expansion and capitalist ingenuity.Enron was unsuccessful in building a sustainable corporate culture that integrated such standards as customer service, or capitalizing their customer devotion and fulfillment, which would have balanced the company’s weight on wholesome, and quick-fix the stock value.
Enron made its money bymeans of unfettered classified partnerships to take on sum unpaid, concealing losses and thrust of exaggerated revenues. However, Enron’s management was able to maintain a bond-rating organization contented. They were capable of sustaining tricks through relentless denial to unveil to ? market analyst, who inquired where all the funds came from. The assessment company in the name of Arthur Andersen neglected Enron’s questionable accounting practice, since they did not want to mislay the beneficial consulting fees.
Enron's organization was condemned for exaggerated turnover reports and malfunction of controls at each stage. According to Eichenwald (2002), "As supervision broke lose at Enron, the statement affirms, a custom of individual dealing and enhancement at the operating cost of shareholders materialized. Accountants and legal representatives signed off on inconsistent and bad choices every step of the way, the statement ended."
Enron’s corporate culture was unorganized and already deteriorating. It had a culture that hardly made a fair protest to be listened to. A corporate culture that never took complains from whistle blowers seriously, saw the principled people remain quiet, while the majority, who committed a number of the most horrible infringements, had been extremely rewarded. Corporate officials at Enron slacked on their duties as they shammed and overindulged themselves. In Enron’s case, it collapsed owing to its failure in structuring the proper kind of a corporate culture.
Corporate culture plays an important role in every organization: it can both bring wealth or a catastrophe to the organization, depending on whether the corporate culture is contaminated or strong.
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