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Essay / Research Paper Abstract
This paper focuses on use of psychological and social theories to discuss greed, such as that which caused Enron's collapse. Bibliography lists 5 sources.
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5 pages (~225 words per page)
File: D0_MTcorgre.rtf
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Unformatted sample text from the term paper:
to accounting practices. The list of accounting abuses by companies such as Enron, Global Crossing, Tyco and more recently, Worldcom will keep university professors and their students active for years
to come answering the question - how could the executive managers of these companies become so full of themselves that they actually believed they could get away with such factors?
While much of the information will provide good fodder for business studies, these companies and their managers actions also provide interesting scenarios
for psychological and sociological case studies. One could say that it was shady accounting practices that brought down Enron and Worldcom. Digging deeper, however, one could also say that it
was psychological and sociological forces that created these problems in the first place. Humans, after all, ran the companies - and humans are prone to all kinds of incitements, including
corporate greed. In this paper, well examine a psychological theory and a sociological theory and use those theories to explain what occurred
with the Enron bankruptcy. As a reminder, Enron, an energy company, collapsed because of huge amounts of hidden debt and dishonest accounting procedures. In collapsing, the company wiped out the
life savings and retirement plans of countless employees who had worked hard to save their funds - but because of corporate greed, lost those funds.
The sociologist Robert Merton expanded on the concept of anomie, which helped make him one of the more well-known criminal sociologists of his time (Evans, 2002). His
theories, however, also fit well with corporate directors that were with Enron and Worldcom, too. Mertons theories began with two elements of social structure - one of which was culturally
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