The Power Corruption Cycle, Essay Example

Perhaps the best example of delegation of power is that of the trust investors and shareholders bestow upon the Board of Directors in order to manage the Company on their behalf.  In this regard the Board is expected to govern the Company affairs in accordance with the Memorandum and Articles of Association and to exercise such due diligence that protects the assets of the business, operates in an ethical manner and ensures the Company does not engage in any criminal or unethical behaviour that may place the company in jeopardy. Most Directors do not have individual powers and as such are expected to abide to the decision of the Board majority.

The Board of Directors of Enron placed the Company into bankruptcy by a series of Board misdemeanours that included tax evasion, money laundering, and misappropriation of funds, conspiracy and varying other charges.  (Gregory, M. 2003).  These fraudulents acts that forced Enron into bankruptcy also impacted the pension schemes ” Enron’s failure destroyed the retirement savings of thousands of employees and hurt individual investors and pension funds across the world” (Gregory, M. 2003). Later court hearing discovered that the Board were also bribing tax officials and the audit firm of Arthur Andersen was also brought into disrepute.

Emotional Intelligence relates to the individual’s ability in order to perceive, evaluate and control emotions. It relates to leadership in the ability to assess your emotional state (behavioural condition) and how this affects others.  Good leaders control their emotions and direct positive energies towards goal attainment. Greed and over ambition are traits that promote corrupt practices whereas teamwork, harmony, and inclusivity are examples of traits that are geared towards openness, honesty and moral values. (Cherry, K. 2011)

Works Cited

Cherry, K. (2011). What Is Emotional Intelligence. Retrieved 5 22, 2011, from About: http://psychology.about.com/od/personalitydevelopment/a/emotionalintell.htm

Gregory, M. (2003, 2 14). Enron ‘bribed tax officials’. Retrieved 5 22, 2011, from BBC News: http://news.bbc.co.uk/2/hi/business/2756345.stm