Enron had always had an innovative culture but in a different manner which contributed to the scandal. Employees were used to weird innovations in finance and stocks that made them great money. The new ideas and products were highly risky and had no backing to support any failures. The company’s culture was to gamble and play with chance since luck can hit the nail right and in case of a failure the wrong can be covered tactfully.
Enron grew wealthy, it claimed, through its pioneering marketing and promotion of power and communications bandwidth commodities and related derivatives as tradable financial instruments, including exotic items such as weather derivatives. As a result, Enron was named “America’s Most Innovative Company” by Fortune magazine for six consecutive years, from 1996 to 2001. It was on the Fortune’s “100 Best Companies to Work for in America” list in 2000, and was legendary even among the elite workers of the financial world for the opulence of its offices. However, as was later discovered, many of these recorded profits were inflated or even wholly fraudulent and totally nonexistent, by the use of sophisticated and arcane financial transactions between Enron and related companies formed to take unprofitable entities off the company’s books (McLean, 2003).
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