Name: Farhan Anwar

SAP:6751

CASE STUDY

Q1: In your opinion, what steps should Skilling have taken to overcome the emerging
issues?

 There lacked management skills he should have kept his vision more broadminded
and rational.
 Focusing on managing the organization should have been more of a concern rather
than expanding Enron by illegal acts.
 Skilling should have planned long term things before expanding the firm, due to this
the management was neglected.
 Skilling should not have been appointed for the post of COO as less knowledge was
available about it.
Due to his lack of managerial skills Enron suffered a lot.

Q2: Considering the above case study, what is the role of business ethics in Enron?
Enron started as a pure ethical business firm it was the culture, Enron provided incentives
and motives to the high performers. The schemes and promotion of short term earnings and
personal interest caused losses in financial terms. There were confusions of the rapid
growth of Enron which lead to many suspicions. Enron maxed out its loans and Banks
started to refuse financing and lead Enron into bankruptcy.
Q3: Is the failure of Enron depend upon the failure of Corporate Governance? Please
discuss
Enron was totally dependent on corporate governance which was its reason for failing.
Enron was lacking effective strategic decisions and faced the issues of transparency and its
accountability. Financial statements were not matching; a proper corporate governance
survey was conducted by individual parties. There schemes in generating revenue led to
their downfall.
Q4: What is the role of fairness and justice in this case?
Enron was considered as a role model of ethical business the customers, investors, and
other members of the community had something to trust their investments but greed
consumed Enron as they started working unethically, breaking the rules just to expand more
in lesser time. Even the Chief Operating Officer was privately filling his pockets and carrying
out daily expenses in the name of Enron. Enron became the biggest example of bankruptcy
in USA.
Q5: If you were in the place of Skilling, what measures you should have taken?

 I would not blindly choose a field that i am not aware of.

 Gathering data and have proper 2-3 backup plans for the expansion of a business to
avoid any future obstacles.
 Proper company growth with a fixed goal in mind.
 Have 2-3 teams that are dedicated to the expansion process and to avail all options
which could prove profitable for the company.