Task 2 1. What were the individual factors that contributed to the failure of Enron? Briefly explain two key factors. Enron collapsed in large part because of not responsible business. So Enron executives were charged with criminal acts. Those charges were fraud. If didn’t occur this acts, Enron would become one of large company in the world. They should keep their self-interest to themselves. They only think of the short-term benefit not thinking of the long-term effect which leads them to bankruptcy. Greed is first individual factor. It can blame for the failure of Enron. Every time and everyplace can increase greed. Greed has no time or limit. In order to get more profit, they did massive fraud and insider trading. They use many different way to cover up they acts. Like once their schemes were discovered by the auditors, their schemes were discovered by the auditors, Kenneth lay encourages them to “keep making us millions”. If auditors disagree, Enron’s would fire him. Enron’s executives put their own benefit above those of their employees. They only thinking of making more money with unethical act. The another factor is failure leadership. Abuse of power to make decision which is only benefit for themselves. While they make decision, didn’t consider economic and polity. They have many unethical behaviours like making a false financial statements, misleading statement and frauds. In the result, the company is broken.

2. What were the organisational factors that contributed to the failure of Enron? Briefly explain two key factors. The organisational factors are Enron’s system. Once unethical behaviour of appears in Enron’ leader, employees were afraid to loss job. In order keep the job, employee would help leader to do some wrong thing. In the result, the company is broken. Arthur Andersen, an auditor and