1. This graph depicts the rapid increase and fatal downfall of the Enron Company.
Enron was a ‘darling’ of the energy sector during the 1990’s. It grew rapidly from a small start up to the seventh largest company in the USA. Everyone wanted a piece of Enron, pushing its stock up dramatically. Senior executives reaped millions from bonus and option plans that were tied to the share price. The temptation was too much: executives and their advisors concocted an elaborate scheme to artificially inflate Enron’s reported success and drive the share prices even higher. The scheme worked until Sherron Watkins spoke. Ms. Watkins was a ‘whistle blower’ who publicized the sham that had been created. Enron collapsed within months, as did its accounting firm.
2. A modified business magazine cover that portrays Enron’s dishonesty and unethical behavior.
Enron is a classic example of the disastrous outcomes waiting for a company whose values and ethics become compromised by greed. Executive compensation plans that reward primarily on share price may encourage inspired activity to slip into unethical and potentially illegal action, resulting in decisions that not only undermine the vision of an organization, but its very viability.
Article Reference: BBC News Article
Picture references: Picture 1, Picture 2
Summary of the Enron Case: 