Ethical leadership
Ethical leadership is a leadership model in which one person influences others to act acceptably for the common benefit at the appropriate time. In all disciplines, ethical leadership is essential for the management of organizations. (Tonge, Greer, & Lawton, 2013) The senior managers of the Enron Company should have practiced this form of leadership. This paper attempts to explain Enron's lack of ethical leadership, the company's failures, and how the company could have avoided the disaster. It is evident from the videos and articles that Enron CEO Jeffrey Skilling lacked ethical leadership in his company administration. The company was accustomed to generating money by any means necessary, and as a result, it could do so by taking shortcuts (Bowen & Health, 2015). Enron's management's involvement in accounting fraud demonstrates their absence of ethical leadership. The CEO was more concerned with obtaining and giving large bonuses than developing the business. The organization engage
From the videos and articles, it is clear that Enron CEO Jeffrey Skilling did not incorporate ethical leadership in the management of the company. The company was used to making money by all means, and for that reason, they could achieve this through shortcuts (Bowen, & Health, 2015). The management was involved in the accounting fraud at Enron, and this is proof that they lacked ethical leadership. The CEO was more interested in giving and receiving big bonuses rather than developing the company. The company was involved in risky practices that were not considerate about other stakeholders and shareholders. For these reasons, the organization went bankrupt.
There are ways by which the catastrophe that befell Enron Company could have been avoided. For instance, if the management would have used ethical leadership when handling public and business issues, e.g. the CEO and his subordinates should have had integrity and honesty. Enron Company would have survived going bankrupt if it maintained safe business practices rather than getting involved in actions that risked the organization's well-being (Tonge, Greer, &Lawton, 2013).
What's Your Reaction?
