PLSC 270 - Lecture 9 - Guest Lecture by Jim Alexander: Managing the Crooked E

Lecture 9 - Guest Lecture by Jim Alexander: Managing the Crooked E

Overview

Jim Alexander, former CFO of the Enron subsidiary Enron Global Power and Pipeline, offers an insider's account of Enron's corporate culture and operations before the company's spectacular fall. The leaders of Enron, Mr. Alexander asserts, disregarded concerns over the company's ethics. Enron strategically found and exploited loopholes in accounting regulations to make their transactions as opaque as possible. Lack of regulation and oversight allowed Enron's traders to inflate their numbers. Organizations that were in a position to oversee Enron's operations sometimes faced grossly misaligned incentives that rewarded negligence. Mr. Alexander emphasizes the notion of the "rational economic man" in Enron's corporate culture, and its predominance over notions of ethical corporate behavior.

Assignment

Case: "Innovation Corrupted: The Rise and Fall of Enron," Harvard Business School Case 9-807-073.

Course Media

Transcript

html

Audio

mp3

Low Bandwidth Video

mov [100MB]

High Bandwidth Video

mov [500MB]