Organization Improvement Project - Essay Example

Organization Improvement Project: Introduction and Background of Study In the contemporary business world, it is necessary to incorporate ethical issues. Leaders are faced with various ethical dilemmas which require the application of these ethical issues. Transparency is now demanded in organizational leadership; hence leaders are expected to show noteworthy ethical practices. This paper analyzes a company called Enron to determine how poor business ethics contributed to its downfall from a previously performing corporation.

The paper also gives measures that would have been applied to prevent the collapse. Formerly a successful organization leading in the business of water, gas and electricity, Enron was transformed into a credit laden and failed company due to unaccountability, corruption and failure to apply ethical principles (Gutman, 2002).Problem IdentificationUnethical and corrupt leadership was the greatest recipe for Enron’s collapse, which for years, the company tried to hide from the public domain. Coupled with dubious retirement plans and stocks, this culminated in disastrous consequences for the company, downgrading what it had achieved in 15 years, whereby it had established itself as a giant in the business world in the US (Gutman, 2002).

Measures that the company would have instituted to ensure that the company did not collapse include; inculcation of organizational ethical cultures in company operations and the management; institution of trade-offs between individual actions and positive actions; Encouraging leaders to have ethical consciousness and to ensure leaders are accountable in their actions. Most important, there should be a complete overhaul of corporate and fiscal systems so that transparency and ethics are injected into corporate business practices at Enron.

Project Design and ImplementationA potent and noteworthy plan needs to be put in place so that improvement can be achieved in the organization. This plan, the Ethical Leadership Decision Making Model, must always expect leaders to exhibit moral awareness before undertaking tasks. In so doing, leaders would be able to gauge the extent of their actions. It is important for every leader to weigh the end results of issues before undertaking themConclusionIn conclusion, The Enron Scandal illustrates what unethical business practices can do to a successful; company.

Once a successful organization, Enron collapsed as a result of unethical decisions, dubious business practices and lack of accountability by its leaders (Gutman, 2002). Had the company instituted business ethics in its practices, it would still be the successful company that ruled America for 15 years.ReferencesGutman, H. (2002). Enron Scandal: The Long, Winding Trail.