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The Enron Code of Ethics was detailed. All provisions were in accordance with company policies. Sims, Brinkmann (2003) stated that Enron policies combined with the code were responsible for the company’s reputation as being fair-minded and honest. It tried to protect the customers’ interests by providing the best service possible. According to the code of ethics, employees must not behave in a way that could jeopardize the company’s best interests. Employees were also forbidden from engaging in business activities that could be considered to be competition for Enron. The company’s policies allowed for failure, rather than allowing it to be a success. These policies inadvertently forced top executives and junior employees to engage ethical behavior, which later led to the company’s financial failure.
Enron’s ethical code was meant to promote good conduct among all its employees. Enron declared bankruptcy in 2001 (Fusaro, Miller 2002). The failure to save Enron is due to the unprofessional behavior of its executives. There was a culture of condescension in the workplace, with a lot of emphasis on financial goals and competition. Enron was driven by its profit orientation to ensure that it emphasized policies that would bring about the greatest possible benefits. A rating system was used to assess the employees. 20 percent of them were to be fired if they were below the minimum requirements. (Marianne 2009). Enron developed the rating system in an attempt to motivate employees to work harder and avoid low ratings. Unfortunately, this system didn’t meet expectations. Employee performance evaluations and a culture that encourages competition leads to deceit. Employees were forced to cheat their work by being under constant evaluation. Underperformance was a constant worry for them. They turned to unprofessional ways of surviving within the company. Since cheating was becoming a common culture, none of them felt shame. Cheating employees viewed those who stood up for what was right as odd.
Employees also committed cheating. They could not report college errors to their colleges because each one was involved in their line of duty. Instead, they focused on their accomplishments at work. Katzenbach (2015) states that employees work together to answer questions and help one another. The Enron environment was so competitive that employees were forced to refrain from asking questions because they found it embarrassing. They were also reluctant to help each other avoid competition.
Enron also made sure that its employees didn’t engage in any kind of outside activity that could cause Enron to lose market share. Enron employees were prohibited from questioning the company’s financial standing or plans. Olson, an analyst for the company, was fired because Olson advised his client to not invest in the company because of its unpredictable status (Marianne 2009).
Conclusion. Enron fell due to its evil culture. This was the result of selfish executives at Enron. The Company was destroyed by the unprofessional behavior of both its employees and officials.
