Enron Case When Most People Term Paper

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This caused the California Energy crisis to become worse by: encouraging traders to engage in actions that would directly increase the wholesale costs. Despite the fact, that there were more than enough supplies to deal with the situation. As a result, traders embraced the directives of Skilling and the company itself by overlooking the ethics of society and focusing on those of the organization. (Cline, 2011) ("Business Ethics," n.d., pg. 22)

Clearly, a lack of morals and ethics at Enron contributed directly to the downfall of the company. The reason why, is because employees were pressured by managers to engage in actions that were considered to be unethical from the perspective of larger society. However, from the viewpoint of the culture of the organization, this was a part of helping the company to reach its different objectives. In the case of the California Energy crisis, these different factors played a major part in highlighting the lack of morals inside the company.

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Where, traders were encouraged to engage in actions that were directly against that of society at large, yet they supported the culture inside the organization. These different elements are important, because they are illustrating how this lack of focus on these areas played a major role in helping the company to be able to meet its bottom line numbers through: effectively engaging in price gouging. At which point, the wholesale costs for electricity began to have a ripple effect on the costs that consumers and business were paying (which resulted in a number of blackouts). This is despite the fact that there was the potential to easily meet the demand of utility customers. Therefore, the situation is California is a microcosm of the underlying lack of ethics at Enron. This led directly to staff members engaging in immoral actions, as a culture was established to reward and support those who embraced these ideas......

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