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The dark side of personality and enron

There is another personality bunch called the Dark Triad, which focuses on negative elements of personality. The three constituents of the three are self-love, Machiavellianism, and mental illness. When it comes to corporate dirts, such as the prostration of Enron, these traits tend to be apparent in the top executives of the company. In this paper, I will research the prevalence of the three elements of the dark three in the corporate executives of Enron.

  1. This was the beginning of the terminal nevertheless. A commonalty amongst many of the executives is the fact that they clearly did non care about the 1000s of employees lives that they had ruined.
  2. As is pertains to leadership, ethical theory is concerned with what leaders do and who leaders are.
  3. The dark side of leadership is the destructive and dark side of leadership in that a leader uses leadership for personal ends. The choices leaders make and how they respond in a given circumstance are informed and directed by their ethics.

History Enron was founded in 1985 by Ken Lay and was ab initio a natural gas company. As the company grew, it easy expanded into other types of power production every bit good as spread outing into other parts of the United States and subsequently the universe.

Mark-to-market is based off conjectural hereafter value of assets, intending that Enron could basically utilize jutting net incomes in their accounting, even if no existent money was coming in. This was the beginning of the terminal nevertheless.

Skilling would come to engage Andy Fastow to assist work the freshly unregulated energy market. Fastow would finally be fired for taking excessively much from the company and basically making concern with himself. Lay would one time once more go the CEO, but four months subsequently Enron would declare bankruptcy due to deceitful accounting, failed concern ventures, and hazardous investment.

ENRON, ETHICS, & THE DARK SIDE OF LEADERSHIP

Narcissists tend to be over-confident in their abilities and may believe that they are really successful even if they are non. Peoples who are high Machiavellians can be really manipulative.

Psychopathy is non be confused with literally being brainsick, though the two are non reciprocally sole. It is possible for these three traits to overlap and work with each other. For illustration, it is easier to pull strings people if you besides do non hold any concern for them. Self-love Self-love will be the first trait that will be explored, as it is the least prevailing amongst the other traits. A great illustration of self-love shared by all of the executives is their certitude in their projected net incomes and accounting.

As mentioned earlier, the mark-to-market accounting technique included jutting net incomes. Enron executives were far excessively complete confident in these projections in their accounting, which was a major portion of the prostration of the organisation. They were besides cocksure about the success of many undertakings that the company took on. Confident that the company could brush off the loss, they all still received big fillips. Skilling himself had several egotistic minutes as good.

  • Journal of Business Ethics, Vol;
  • Last, he could non acknowledge when things were traveling incorrect;
  • None of the executives seemed to care about the fact that they were coercing power outages on 1000s of people for their ain personal additions.

One illustration was when he was being interviewed for the Harvard Business School. Last, he could non acknowledge when things were traveling incorrect.

Machiavellianism The following trait to be explored is Machiavellianism. Machiavellianism is the most prevailing trait of the dark three in Enron executives.

It is noted in the docudrama, The Smartest Guys in the Room, that Enron was really good at gulling America into believing it was extremely successful. Not merely did the American populace non recognize the at hand prostration of the corporation, even the rank and file employees had no thought what was coming.

That is merely rubing the surface though. In 2000, California experienced an energy crisis, ensuing in many blackouts throughout the province. Enron was a cardinal subscriber to this crisis. This resulted in a higher demand for energy, which meant more net income for Enron.

Enron was at no deficit of power either, as it was exporting energy out of the province every bit good. Ken Lay, being the president of the company had his ain motivations every bit good.

Lay was utilizing the energy state of affairs to pull strings province political relations. That was non the merely manipulative thing Lay did nevertheless. Ken Lay is non the merely 1 to demo the Machiavellian trait.

  • In essence, ethical theory provides a basis for understanding what it means to be a morally decent human being Northouse, 2016, p;
  • One illustration was when he was being interviewed for the Harvard Business School;
  • Mental illness Psychopathy is the 2nd most prevailing trait of the Dark Triad in Enron executives;
  • Altruism is an approach that suggest that actions are moral if the their primary purpose is to promote the best interests of others;
  • Lay was utilizing the energy state of affairs to pull strings province political relations.

Jeff Skilling was really manipulative as good. The first illustration is the debut of mark-to-market accounting and his use of that. Skilling was good at maintaining employees in the dark about what was go oning to the company excessively.

This can besides be related to an experiment conducted by Stanley Milgram that basically concluded that people are obedient to figures of authorization Patten, 1977. Skilling, being the Chief executive officer, would frequently non be questioned if analysts were uneasy about what he told them to make.

The Dark Side of Personality and Enron

Ironically, while he was stating employees to put in Enron, he was selling his ain stock, since he knew what was coming.

Even at the point when Skilling left Enron, he knew the company would be able to last for about a twelvemonth before it collapsed. He believed this would give the visual aspect that the prostration was non his making. Two other people displayed Machiavellian features in Enron every bit good.

One of them is Lou Pai. He besides left Enron with the most net income, while go forthing his division to prostration. Andy Fastow is another Machiavellian type individual in the Enron dirt.

Mental illness Psychopathy is the 2nd most prevailing trait of the Dark Triad in Enron executives. Psychopathy besides works good with Machiavellianism since it is easy to pull strings people when you do non care how your actions affect them.

A commonalty amongst many of the executives is the fact that they clearly did non care about the 1000s of employees lives that they had ruined. The California energy crisis serves as a great illustration for cases of mental illness as good.

  • Skilling would come to engage Andy Fastow to assist work the freshly unregulated energy market;
  • Skilling, being the Chief executive officer, would frequently non be questioned if analysts were uneasy about what he told them to make.

None of the executives seemed to care about the fact that they were coercing power outages on 1000s of people for their ain personal additions. Each of the executives has their ain illustrations of mental illness as good. Had those employees been discovered, things could hold turned out much worse for employees for the full organisation, more so than if the company had merely gone under. This is a perfect illustration of him non being concerned other people and merely himself.

When Enron collapsed Fastow besides agreed to attest against the other executives in order to procure a lesser sentence for himself. Skilling has the most cases of mental illness. This procedure allowed employees to reexamine each other.

This truly shows his deficiency of concern for the people that he was immersing into darkness. Decision When it comes to personality, non all traits are considered positive or socially desirable.

There is a personality group called the Dark Triad, which focuses on over assurance and haughtiness self-lovemanipulative qualities and pragmatism Machiavellianismand deficiency of concern or remorse toward others mental illness. These three traits tend to be apparent in executives of corporate dirts. In the instance of Enron, Ken Lay, Jeff Skilling, and Andy Fastow all demonstrate the prevalence of these elements of the Dark Triad in their use of the company and market, their deficiency of concern for employees, and over assurance in their abilities to successfully pull off their company.

Journal of Business Ethics, Vol. Organizational Behavior 16th Edition. Machiavellianism, Profit, and the Dimensions of Ethical Judgetment: A Study of Impact.