Enron Case Response, Essay Example

How did the corporate culture of Enron contribute to its bankruptcy?

If there is one word that would be enough to define of Enron, it would be the word ‘lavish’. Embracing the concept of determining their power from the physical appearance of establishments they own and establishing visual appeal among their target market, the company made sure that their establishments made a statement. Something that would identify their rank in the industry; their supposedly innovative ways of designing their business centers has led them to acquiring unnecessary liabilities which they could have used to improve research and increase their competence in continuously presenting new innovative products to the market [as they are known for].

Did Enron’s bankers, auditors and attorneys contribute to the company’s demise? If so, how?

Yes. Somehow, the hiring of bankers as well as auditors and attorneys on the part of Enron has created more problems than solutions. Relatively, most of the said individuals were concerned about how much they may be able to get from the process of supposedly resolving the issues. Utilizing strategies that allowed the business to keep on retaining its credit status even though it is already undergoing business failure has created more damage to the image of Enron among the market that it tries to attract. As a result, the business operations of the company became even weaker.

What role did the company’s chief financial officer play on creating the problem that led to Enron’s financial problems?

The chief financial officer was supposed to give attention to the records of the financial gains and losses of the company. His inability to take a closer look at everything, especially on recording tasks he has assigned for others to complete renders the overall operation of the business rather scrupulous in nature. Notably, this is the reason why when it was finally found out that most of the recorded data on the financial status of the companies were fraudulent, the financial officer began pointing his fingers to others when he was the only one who needs to take the blame as he was supposed to take over the general process of the situation instead of simply putting off the tasks on his assigned employees.