Ecision-Making Pitfalls: The Enron Debacle

Poor decision making can occur at any level. It affects employees at all levels, from the chief executive officer (CEO) down to the administrative assistant. Five decision-making pitfalls: groupthink, escalation of commitment, Abilene paradox, group polarization, and unethical decision making.

The Enron debacle is an excellent example of how poor decision making can prove disastrous.

In this weeks assignment, you will learn a little more about Enron and the poor decisions its leaders made.

Read the following article:
Guilty As Charged!; A verdict on Enrons top two executives...and on an entire era.Kim Clark, Marianne Lavelle. U.S. News & World Report. Washington: Jun 05, 2006. Vol. 140, Iss. 21; p. 44-45

This article illustrates two factorsa groupthink and unethical decision making

For your assignment, respond to the following questions:
-How is the Enron case an example of the way in which groupthink can lead to a disaster?
-Who acted unethically?
-How is the Enron case an example of the way in which unethical decision making can lead to a disaster?
-What was the unethical decision or behavior?
-What happened to the company and its stakeholders as a result?
-What happened to the CEO who made the unethical decision?

Note: Be sure to document any information that is not common knowledge and that you took from secondary sources to answer the questions.