Using points from the discussion at the end of the Week 2 lecture, prepare your answers to the following.

What were the individual factors that contributed to the failure of Enron? Briefly explain two key factors.

The greed has resulted in the failure of Enron. As shown in the film, most of the the executive, managers and staff are arrogant intolerant and greedy, blind by money, they are looking for personal gain which means focus on individual rather than collective.

Then, the ambition has driven the company regards profit as everything irrespective of it’s actual strength and rules.

What were the organisational factors that contributed to the failure of Enron? Briefly explain two key factors.

Firstly, Enron has used market to market accounting, the company’s collapse can be traced back to this questionable accounting practice as well as the application of Special Purpose Entities (SPE’s) to hide financial debt.

Secondly, there are plenty of incident happened within company due to the mismanagement. for example, when Enron enter into Indian Power and Natural gas Market without doing analysis about Indian market which has caused it lost billions of dollars.

What were the social factors that contributed to the failure of Enron? Briefly explain two key factors.

As one of the biggest company in the world, Enron was given high expectation by the society, the only way to measure success is how much profit can be gained, which has resulted in the failure of Enron.

Then, the lack of ethical corporate behavior has led business to doom.