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Enron scandal is an interesting event which had a significant impact on the business world and demonstrated many managers how they should not run businesses (Norris, 2003). It also showed different sides of the story that influenced the event. From one side, there is Cindy Olson, and from another, there is a documentary about Enron which reveals the negative nature of the company. Both examples agree that the company failed, but they provide different explanations for it. The core idea is that depending on the person’s understanding of the problem, it is possible to deal with it as well prevent.
Cindy Olson’s understanding of the problem is rather one-sided. She stated that the company was not able to keep up with its fast development, so the managers were not ready for the possible threats and losses. They did not know how to manage a giant company that was quickly expanding, and experiencing significant changes on its way. As a result, they made many mistakes that led the company to the failing state and all could be done was to go bankrupt.
The other suggestion made by Olson depicts the situation more objectively. She states that the company lost its way and was no longer working according to its mission and goals. Thus, there were many tensions and negative moments within the working sphere, and employees felt that the company was moving in the wrong direction. As a result, they felt like the company was not interested in good performance, but cared only about making profits using any possible means.
The video, on the other hand, provides a more realistic approach to the company’s scandal. It shows that the company was run by many people who acted against the laws, and did not care about usiness ethics and morals. They broke various rules and laws, and they misused their power for tricking the public. They created many contracts and agreements which were not true in nature, but created an illusion of the high profits of the company. For example, they would take money before completing their tasks, or they would create illusionary companies that had worked with Enron so it appeared like the company was making good money while it was not. The video shows that the workers were highly competitive to the point when their competitiveness was no longer healthy, but created tension and hatred within a working place. Thus, the video is a good example of the problems the company has experienced from within. It also helps understand why an organization which appeared to be so powerful and profitable ended up the way it did.
The video gives a very different view on the situation comparing to the text. In the text, the company appears to be an organization which made some mistakes, but lost rather to inexperience and inability to handle difficult situations. While the film shows that the company failed because it was never meant as an honest business, and was created specifically for the purpose of making money in any possible way.
Personally, the situation to me is rather clear since I view Enron as a company unwilling to play in accordance with the rules. As a result, it paid the price. During our class, we learned a lot about business ethics, and I found the concepts connected to marketing strategies and human resource management to be the most interesting to me because they emphasized ethical aspect of these concepts. Thus, due to my interest, I would use the knowledge I gained about them to handle the similar situation.
First of all,, I would not lead the company to such a horrifying state. It was the company where employees did not appreciate each other and the rules (Silverstein, 2013). I would never run or work for a company that did not follow rules and principles of an honest business, so I would change the atmosphere and attitudes of Enron from profit-orientation to mission-orientation. Thus, it would work for the benefit of the people, but not for tricking them in order to make as much money as possible. Also I would establish clear policies for the workers to reduce tension in the working place and competitiveness.
In addition, I would run the business in an honest way and emphasize on fair deals. The company would not create a vision of success; on the other hand, it would expand slowly, but confidently. I believe that one of the major mistakes Enron made was creating the fake image of being profitable to attract more people because it was something that went against basic business ethics (Velasquez, 2011). I understand the reasons behind it and motives of people involved in the scandal, but it does not justify their behavior.
I believe that every business has to be honest as its fundamental part which enables it to move forward. Employees have to be aware about being honest with the customers, coworkers, and managers and they also have to be aware of the company’s mission that has to motivate them to bring something good to the people, not to use and fool them. Enron, in my opinion, was the company that failed from the very beginning because even when it started, the company did not follow these doctrines and with time, it was only falling down. That explains the many negative consequences which ended the company’s existence and made it as an example that no one wanted to follow.
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