MGMT 3400 Case 3: Enron Case Update MaterialThe following collection of articles are in regards to events concerning the Enron Scandalbeyond those covered within the case itself. Links to Articles:Update article #1: Jeffrey SkillingUpdate article #2: Andrew FastowUpdate article #3: Lessons learnedUpdate article #4: Looking back at EnronUpdate article #5: The Effects of ScandalUpdate article #6: Understanding mark-to-marketThe main case is included. Please focus your reading on the case for the most information about Monsanto. In addition, read the included articles regarding the current situations for Jeffrey Skilling and Andrew Fastow, as well as the outcomes of the Enron scandal and the impact of scandals in general. Provide answers to the following questions:
CASE QUESTIONS
1.What were the effects of the “rank and yank” performance appraisal system on the organizational culture of Enron?
2.What happened to Sharron Watkins, the whistleblower? What does that communicate about the company?
3.What did “mark-to-market” (described in the video) allow the company to do? What role did “mark-to-market” do in terms of furthering the unethical behavior within Enron?
4.What role did the company’s chief financial officer, Andrew Fastow, play in creating the problems that led to Enron’s financial problems?
5.Did Enron’s bankers (Merrill Lynch), auditors (Arthur Anderson LLP), and attorneys (Vincin & Elkins) contribute to Enron’s demise? If so, how?
6.How did Enron’s top leadership set the tone for the unethical behavior that became institutionalized within the company?
7.How did the corporate culture of Enron contribute to its bankruptcy?
8.What effect did the Enron case have on Americans’ impressions of “big business”?
9.What are the lessons we can learn about Enron in terms of HR practices, leadership, and culture?
10.What can we learn about the impacts of scandals in general? Why is it so important to avoid scandals?
