Enron pt 4

Date: July 13, 2008
Time: 10:45 PM
Place: Kitchen

Given the same variables, control systems should have been put in place. Control was needed in all levels: strategic, structural, operations and financial (Griffin, 2008). Operational controls were needed to cope with the failing ventures which Enron hid from their financial statements. Financial controls were needed; audits performed by Arthur Anderson were not accurate or objective.
To cope with Enron’s ethics problem, a values-based climate should be adopted by the firm. The leaders must be aware of the impact of their personal values and ethics on the decision making. Leaders must be trained and mentored on ethical standards and moral behavior. The leader’s values must align with ethical organizational values. To control the organizational values, transformational leadership will inspire subordinates to accept the leader’s values. Polices should be set and enforced; leaders should give feedback and use positive reinforcement to support desired ethical behavior