Enron Corporation, one of many businesses, was involved in the most significant business fraud case in history. The company provided its clients electricity, communication services, and natural gas. However, a fraud investigation and bankruptcy claims forced Enron to cease operations in 2001. Despite having the ability to prosper in the international market, the multinational organization Enron ultimately failed due to unethical business practices. The lack of managerial integrity forced the closure before any other ethical failings were discovered. Therefore, the analysis is focused on discussing the administrative integrity dilemma, the contributing elements, the preventative measures that should have been implemented to avoid the embarrassing situation, and the lessons learned from Enron’s failure.
Enron was initially established essentially on moral values. However, because of their goal for personal riches and the need for fast growth, the leaders of this organization acted immorally. Due to the avarice of the top management, extreme incentive programs were created to entice and motivate intelligent, self-driven workers and investors in the organization. However, Enron’s executives were under constant pressure to live up to their unrealistic promises (Silverstein 1). As a result, organic strategies were created to coincide with their ambitious income and sales targets. However, the initiative could have been a success because of the company’s financial issues. Jeff Skilling, the manager of Enron, started to rely extensively on severe borrowing to keep the commercial work current. After meeting with Arthur Anderson, Skilling concluded that excessive borrowing would harm the company’s share price. Based on such assumptions, the two Enron executives created secret strategies that could produce income in the shadows. The agreement signalled the beginning of Enron management’s construction of an immoral culture (Dembinski et al. 103).