The most significant business fraud case in history was committed by one of many companies, Enron Corporation. The corporation offered its customers energy, communication services, and natural gas. However, Enron was forced to shut operations in 2001 due to a fraud probe and bankruptcy claims. Enron was a multinational corporation that had the potential to succeed in the global marketplace, but dishonest business practices ultimately caused it to fail. Other ethical transgressions were noted, but the lack of managerial integrity came up first, forcing the closure. The analysis is therefore devoted to addressing the administrative integrity crisis, the factors that contributed to the issue, the precautions that should have been taken to avoid the embarrassment, and the lessons discovered from Enron’s failure.


In essence, Enron was founded on moral principles at first. However, the leaders in this organization engaged in immoral behavior due to their desire for personal gain and the drive for rapid growth. Extreme incentive programs were established to attract and inspire smart, self-driven employees and investors in the company due to the avarice of the top leaders. However, Enron leaders were under constant pressure to fulfill their unachievable claims (Silverstein 1). As a result, organic strategies were developed to match their aggressive sales goals and earning objectives. However, the project was unsuccessful since the business faced financial difficulties. As a result, Jeff Skilling, the manager of Enron, began to rely heavily on severe borrowing to keep the commercial work current. Skilling concluded that excessive borrowing would lower the company’s share price after speaking with Arthur Anderson. The two Enron executives developed covert plans that could generate money in the shadows based on such presumptions. In actuality, the arrangement marked the start of Enron management’s development of an immoral culture (Dembinski et al. 103).

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