Unlearned lessons from the past: an insider's view of Enron's downfall

Abstract

Purpose

The purpose of this paper is to capture an insider's view of the organizational culture and management practices that contributed to the downfall of Enron. In light of the current worldwide financial and economic crisis, this article aims to highlight some of the unlearned lessons from the past.

Design/methodology/approach

A qualitative interview case study was used for the basis of this paper.

Findings

This article shares an insider's (former vice president's) insights related to the practices and culture that led to Enron's unethical decisions and strategies. It discusses one man's view of the history of Enron, as well as what should have been learned and applied to the global financial industry to help to minimize or even avoid today's painful economic crisis.

Practical implications

Six main causes of unethical behavior for individuals in organizations are outlined, and important lessons learned are presented. The article also discusses the importance of reflecting and remaining inwardly vigilant, while outwardly thinking of and serving others.

Originality/value

The information for this article was based upon an original interview.

Citation

Madsen, S. and Vance, C. (2009), "Unlearned lessons from the past: an insider's view of Enron's downfall", Corporate Governance, Vol. 9 No. 2, pp. 216-227. https://doi.org/10.1108/14720700910946640