Enron Oil: Organizational Priorities and Culture

Question Four (32 points) A recurring theme in the course is that organizational priorities are not simply given, but are shaped by culture. A particularly dramatic illustration of this has been the notion that, in a shareholder value culture, the profit imperative might actually be secondary to share price.

Provide a summary explanation for how the episode of Enron Oil (the hedging operation within the larger Enron corporation) illustrates the idea that profit became a mere means toward achieving the ultimate end of a higher share price at Enron, as opposed to the end itself.*

*Note: The expression “means to an end”, which was used in class, distinguishes an objective (the “end”) from the method used (the “means”) to achieve it.

** This needs to be 1-2 pages long!!


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