AutoRecovery save of White Collar Crime a Form of Occupational Fraud.doc

Coupled with the problems arising from marks and

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Coupled with the problems arising from Mark’s and Skilling’s infighting over which business/economic model to follow, the accounting scandals that publicly emerged in 2001 were enough to finally bring Enron to its knees. In the following paragraphs, the paper will take a look at how and why Enron’s organizational culture developed and what went wrong from variety of leadership and ethical perspectives. In total, four theories will be explained and applied as the lenses in which to more completely examine the leadership that fostered the culture at Enron.
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WHITE COLLAR CRIME 23 Integrity was not a trait frequently exhibited by many of the executive leaders within the culture at Enron. Jeffrey Skilling, for example, was a supremely confident, intelligent, and determined leader. His ability to provide a vision for the company was, by many accounts, amazing and inspiring. Skilling’s leadership style was one that exemplified and encouraged creativity and risk-taking, especially as it related to the maximization of profit and Enron’s share value (Free, Macintosh, and Stein, 2007, p 5). In the case of Skilling’s leadership style, however, the maximization of profit was aggressively taken to such an extreme that the leadership trait of integrity became a non-factor within the culture at Enron. This lack of integrity was a serious flaw within the organizational structure and culture of the company for while important group members, like Andrew Fastow, began encountering situations requiring the honest disclosure of financial information; few employees or group members were provided with the external motivation from Skilling’s leadership to tell the truth about Enron’s real financial situation. Those individuals that did have the integrity to speak honestly about Enron’s financial losses were dismissed, demoted, or summarily fired by those in power in a process known in the Enron lexicon as “rank and yank” (Free, Macintosh, and Stein, 2007, p. 7). The overall lack of integrity on the part of leadership helped to foster a “me-first” and “dog-eat-dog” attitude within the rank and file of Enron. As time passed, those attitudes crystallized into cultural values and norms heavily influencing narcissistic patterns of behavior demonstrated, most vividly, by the cut throat environment of Enron’s financial trading floor.
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WHITE COLLAR CRIME 24 Fraud Rationalized Once a corporate fraud perpetrator is identified, it won't take long for you to wonder: Why? You may not believe it, but criminals often believe they are doing the right thing (or at least close to it). From the 2002 Enron fraud scandal and forward, one of the most interesting behavioral beliefs held by perpetrators is their belief that they were acting in a legitimate manner. Prosecutors say these criminals, even after they enter a guilty plea, often take months or more to fully accept their guilt. All of the convicted criminals had spent most of their lives viewing themselves as law-abiding citizens. Each believed that they were performing acceptable business
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