Ethics And Enron Analysis Essay Example

(Dessler, 2011). #3. This case and chapter both had something to say about how organizational culture influences ethical behavior.

What role do you think culture played at Enron? Give five specific examples of things Enron’s CEO could have done to create a healthy ethical culture. The most persuasive explanation of how an apparently ethical company could go so wrong concerns organization culture (Dessler, 2011). The reasoning here is that it’s not the rules but what employees feel they should do that determines ethical behavior (Dessler, 2011). We can define organizational culture as the “characteristic values, traditions, and behaviors a company’s employees share (Dessler, 2011). ”

I believe that culture played a role in how the employees acted during the entire meltdown. The firm’s culture should send clean signals about what is and isn’t acceptable behavior. At Enron it seemed that it was acceptable to lie, and cheat and let everyone fall in the end as long as the bad guy came on top. Enron’s CEO could have done several things to create a healthy ethical culture. First he could have clarified the expectations that he had of his employees. He needed to make clear the expectations with respect to the value he thought was critical.

Second he needed to walk the talk. Employees take their signals from the boss’ actions (Dessler, 2011). They can’t say, “Don’t fudge the financials,” and then do so themselves (Dessler, 2011). Third the CEO needs to provide physical support by sending the signals regarding what employees should and should not do. Forth he should train his employees the ethically right way to do things. And lastly he should put into affect a whistleblower

policy, this will help reduce employer unethical behaviors.