Ethical Leadership Void at Enron and Preventing the Collapse of Leadership

Ethical Leadership Void at Enron
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Ethical Leadership Void at Enron
Enron was once one of the highest-ranked companies in the United States until its collapse in 2001. The issue began when the highest officials misused their powers by exploiting their company standing via information manipulation. This ultimately led to accounting fraud, which was the primary problem the company has faced. Their subordinates followed the leadership of the top officials, and the corruption continued from the highest to the lowest of ranks. The corruption resulted in multiple failed overseas investments, fraudulent loans, and questionable partnerships. The company stock price began to fall, leading to its bankruptcy (Johnson, 2003).
Preventing the Collapse of Leadership
Choosing or appointing the leaders is one of the first steps in establishing the firm foundation of a company. They must obtain the six pillars of character: trustworthiness, respect, responsibility, fairness, caring, and citizenship (Northo...