Dear diplo,
There are numerous arguments that would point to the fact that Enron
failed to work effectively. First of all, the violated the law. An
effective business must be attentive to the law, in order not to get
in trouble.
The collapse of Enron demonstrates several important factors in
ineffective menagement: lack of transparency, lack of information flow
in all management levels, lack of responsibility for the workers and
their fate, lack of awareness for industry changes, etc.
However, it should be noted, that according to the CPA organisation
(which are of course biased in the matter): "The need to restate
Enron's financial statements, the possible lack of clarity of the
company's footnote disclosure about its complex transactions, the
complex accounting standards which the company had to follow or its
auditors not detecting the items causing the restatement during that
year's audit — none of these directly caused Enron's failure. While
these items may have caused further reductions of confidence in Enron
and its business, Enron's was a business failure." (Source:
http://www.orcpa.org/press_room/hot_news/Enron_FAQ.htm )
See http://www.platts.com/features/enron/crash.shtml Platts Energy
Economist Jan 30.
http://www.conference-board.org/pdf_free/EAReports/E-0026-02-EA.pdf -
Enron and effectiveness in business
I hope that answered your question. I used Google to search for the
issue of effectiveness and Enron. Please contact me if you need any
clarifications on the answer. I'd be pleased to clarify my answer
before you rate it. |
