Critically Review Enron Scandal: How & Why Enron Corporation Collapses

Critically Review Enron Scandal: How & Why Enron Corporation Collapses. My opinion on how to protect a company from collapse.

Critically Review Enron Scandal

Enron Corporation, an energy company based in Houston, Texas, was involved in one of the most devious economic scandals. The company was also a commodities and services organization that served much of the country. Multitudes of financial results issued by the company have been found to be based on a systemic scheme that can be distilled down to pure accounting fraud.

Enron’s relationship with accounting firm Arthur Anderson had been challenged numerous times. Questionable accounting techniques were brought to light, and many suspected that the stench of fraud was lingering around the business. During the profitable years, Enron’s stock price was above $90 per share. However, the scandal that eventually was revealed toppled the business in an instant by Bottiglieri, Reville, and Grunewald. The stock closed in 2001 at an ultimate low of 26 cents a share. Furthermore, Enron’s inevitable declaration for bankruptcy.

Kenneth Lay, the founder of Enron, promoted the importance of high stock prices above all else. He pushed employees to focus on rising rates of return by trading assets and borrowing more money. An asset free balance sheet meant that new resources could come in and trick the public into thinking that the company was hugely successful. Lay essentially began the craze for high earnings, an obsession that cost his company its life. Ultimately, it was Lay’s role that set in motion the collapse of Enron.

Andy Fastow, Enron’s CFO, was a master at manipulating liabilities. He used a technique common among energy corporations that used special purpose entities to relocate liability away from Enron. He made it so that the stock price per share would continually increase, which allowed it to continually hold a high investment rating. Fastow was the reason that Enron got away with the scandal for so long. He enabled the company to hide behind false information and comfortably take advantage of the system.

Enron, as a company, completely fell apart after the collapse. It was forced to renounce earnings with multiple partnerships such as Chewco Investments and JEDI. The corporation was then required to recover profits back to 1997, which amounted to just $586 million which was just 20% of the estimated earnings. The stock prices dropped to mere pennies and lost all consumer and financial buoyancy. Enron declared bankruptcy shortly after

Enron’s shareholders did not benefit from the greed of the executives. Those that had their pension funds financed in the company lost almost everything. Consequently, the SEC and Congress worked swiftly to begin immediate restructuring to reduce losses like those experienced, in the future. A $40 billion lawsuit followed the collapse, demanding compensation for the shareholders’ worthless stock. The collapse destroyed more than $2 billion in pension plans.

The Enron workers have suffered immensely and in most cases lost all that McLean and Elkind “The Guiltiest” had put in the company. One employee, Charles Prestwood, lost $1.3 million in the Enron collapse. Money entrusted in the company in retirement savings or investments disbanded overnight. The SEC announced after the crash that they would try to regain as much of the missing money as they might through their justice system. Enron employees have fired abruptly without issuing any notice. Employees also need to vacate the company within 30 minutes. So, the company should be aware of the economic situation and the factors of the company’s downfall. We must always monitor and speed constantly.

Enron executives also felt the consequences of the collapse. Paula Rieker was charged with insider trading when she sold just under $1 million worth of shares just a week before the collapse. Skilling was charged with 24 years in prison due to mostly charges of securities fraud. Lay was charged with 45 years in prison but died before the sentence was scheduled. Fastow was sentenced to 10 years in prison with no parole.

My Opinion on Critically Review Enron Scandal

So in my opinion the company should be aware of the economic situation and the factors of the company’s downfall. We must always monitor and speed constantly. Instead of the company’s Enron wasting the struggle to make a loan to support Enron’s business.

The company should try to cover back the share that employees have invested in the company. So no company still bears debt in terms of banks and between employees but often if the share, if the company loses indirectly the person involved or invests with the share also loses. This is because if the employee wants to claim rights, the company has nothing, they want to sue the company is under bankruptcy so no point. From this, the company must take care of management at least issue a notice saying the company can’t cope for the next month, so employees can take time from the issuance of the notice to find a job.

Besides that, is that the ethical choices of corporations need to be more closely monitored. If an organization is left unchecked, it has the ability to abuse the system and do whatever it wants. I believe that due to the Enron collapse people will pay more attention to how corporations operate even if they cannot directly control the ethics of the company. At least in this case there will be significant pressure to do what’s right.

Last but not least, that our group can conclude was organizations can be as ethical or unethical as they want. They will treat their employees, shareholders, partners, and creditors however they want. Sometimes corporations will act in their best short term interest, but there’s also the option to behave properly and look at the long term goals. Risk tolerance can be a good thing, but it is up to the corporation to decide how much risk they are going to take and at what cost are they going to take risks. We can do our best to regulate and criticize, but in the end, it’s their call. We can only hope they do the right things.

Enron Scandal Movie Review The Crooked E: The Unshredded Truth TV Film

Corporate Branding and Personal Branding How To Improve Branding

Corporate branding and personal branding. How to improve corporate branding and personal branding, The importance of corporate branding and personal branding.

Corporate branding and personal branding
What is Corporate Branding?

Corporate branding denotes the set of strategies and practices that promote the name of the company instead of promoting the services or products. So, it is a broader way of branding that focuses on marketing for the company name to make it more popular amid counterpart, stakeholders, suppliers, employees, and consumers. The way of corporate branding is different from service and product branding in many ways.

There are many companies that are highly concerned about corporate branding to differentiate them from competitors such as Apple, Tesla, Nike, Hub Spot, Facebook, and Takeaway.

What is Personal branding?

Personal branding refers to the intention of marketing for the individual to be an influential person in the industry. It is all about the effort to increase persona credibility to differentiate them from others. Some basic characteristics that you must need to have for personal branding such as discovering your uniqueness, earning the reputation, and becoming familiar with people from all walks of life.

There are many people who have become very popular for personal branding, for example, Oprah Winfrey, Jon Morrow, Gordon Tredgold, Neil Patel, and Sean Ogle.

The importance of corporate branding and personal branding
  • Importance of corporate branding

Corporate branding is very important for the many aspects of the company such as earning reputations, getting new customers, making trust within stakeholders, improving employee satisfaction, and increasing company personality.

Earning reputations

Corporate branding assists the industry to earn recognition and reputation as well as become famous to the customers. Earning reputations is a very important practice that every company wants to have it for competitive advantages.

Getting new customers

Customers are the core power of operating a company smoothly, therefore, they try to get consumers to sell products or services. Strong corporate branding brings positive impacts to customers. When a company becomes popular among general people, they can take challenges introducing new products and services confidently.

Making trust within stakeholders

Effective corporate branding can influence stakeholders to be associated with the company without any doubt. Stakeholders are the core components of the company such as suppliers, employees, customers, media, and so on. A company cannot run smoothly without all-out support of the stakeholders, it is an important strategy to make trust among stakeholders.

Improving employee satisfaction

Employees are also known as internal stakeholders. Employees can take a company to a top position in competitive advantages with great efforts as well as they also can get down the industry with negative attitudes such as carelessness, dishonesty, conspiracy, and so on. So, the industry needs to make employees happy to keep the pace of development. Corporate branding can make trust among employees to work effectively with the company.

Increasing company personality

Increasing company personality refers to differentiating the company’s identity from other competitors. They need to follow some steps to achieve it completely. A strong company personality leads the industry to get profit through a proper marketing plan. A sophisticated marketing plan must need to increase company personality.

The importance of corporate branding and personal branding
  • Importance of Personal Branding

Why do you need to do personal branding? Personal branding has been an inevitable factor to distinguish you from competitors with a higher value. The importance of personal branding has been mentioned below.

Gain confidence

Your confidence level will be developed if you start to personal branding. Confidence comes from your strengths, skills, and positive qualities. Personal branding will let you identify both negative and positive aspects and you can minimize your weaknesses as well as execute positive aspects in your life properly. Finally, it will raise your self-esteem with self-awareness.

Utilize energy

Another benefit of personal branding is to have a clear concept about what you are best at. And, you can utilize your talents in your personal life. Every human being has some god gifted talents that he or she needs to take into account for proper execution in life. So, personal branding makes you able to use your inner power in physical life.

Differentiate yourself from others

Personal branding gives a person to distinguish him or her from others. Differentiation is an inevitable strategy to soar personal branding. It is very crucial to be successful without distinguishing yourself from others. So, personal branding will give you a great opportunity to differentiate you from your rival competitors.

Building credibility

Personal branding definitely makes you capable to build credibility at the end of the marketing policy. People will trust you more when you have a good personality with self-esteem. You can influence others through your personal credibility.

 Connection with the specific target audience

Target audience segmentation has come up with excellent benefits for personal branding. You will not be able to complete your personal branding process without connection with the target audience. Everybody is not your target audience so you have to find out them to communicate. You need to reckon with demographic, geographic, psychographic factors when marketing.

How to improve corporate branding and personal branding
  • How to improve corporate branding
  1. Enrich company background information

The background information refers to the basic information of the company including establishing date, registration number, business types, contact information, address, website, mission and vision, and so on. These are the inevitable information for every well-known company. They will not be able to improve corporate branding without developing these basic elements of the company.  For example, it is quite impossible to operate a business if they do not have a specific office address and website. They not only have to have them but also advertising to know everyone.

2. Collaboration with stakeholders

Stakeholders are internal and external people who have an interest in the business for affecting or being affected by a business. They can be a person, community, organization, and society. The external and internal stakeholders play an influential role to operate the business smoothly. For instance, suppliers, customers, communities are external stakeholders where owners, employees are internal stakeholders. An ethical collaboration with stakeholders can improve corporate branding in many ways, and the company earns huge profits with mutual benefits.

3. Maintain effective communication

Effective communication has become a key component for improving corporate branding, and it can determine that the business will thrive or fall down. The dissatisfaction of the employees and customers can be caused by ineffective communication. Finally, it can lead to a bad profit margin in the business. So, effective communication through multiple media helps to improve corporate branding.

4. Applying modern technology (Social Media)

Social media have become an indispensable part of communication. There are more than 800 social media that are being used communication and sharing information such as Facebook, TikTok, WhatsApp, Viber, Instagram, WeChat, Google+, Pinterest, LinkedIn, VK, and so on. It is estimated that the total users of social media are around 3.0 billion where only Facebook monthly users are 2.30 billion. The industry is taking advantage of social media for business purposes including selling products, communication, getting feedback, and marketing. Social media marketing strategy has become very famous in the modern era. So, applying modern technology emerges as an outstanding strategy to improve corporate branding. Corporate branding by website development- How to improve corporate branding

Figure 1: corporate branding with modern technology (Social Media)

6. Evaluating activities

A well-known industry always tries to change the strategy to cope with the situation. Every industry wants to establish a competitive advantage. Assessing all activities is a prime strategy for the company to be differentiated from another competitor. They need to plan as well as implement and finally evaluate to take the decision whether the strategy will be continued or need to be changed. So, evaluating all activities is an important step to improve corporate branding.

  • How to improve personal branding
  1. Build your Foundation

The key principle of building a foundation is authenticity. You have to be authentic and confident to craft a persona. Personal branding is not pretending something that you are not, but it is the strategy to show your skills to your audiences or customers. You have to keep remind three elements when building a foundation for example skills, beliefs, and values. Skills mean the awards, certificates, training that you have achieved in your life. Passion denotes the topics and sectors that you are interested in. What do you stand for, and what do you stand against? In addition, you have to articulate your brand’s vision, mission, and message.  Hence, building your foundation is the first and essential elements to improve personal building.

2. Choose your Target Audience

Not everyone is your ideal audience and client. Targeting the audience is a prior step to personal branding. People will not accept you until proving necessary information to them. So, you have to identify who is your audience and customers before disseminating info. There are three important factors for targeting audiences such as geographic, demographic, and psychographic factors. People will follow you who really getting benefits from you directly and indirectly.

3. Optimize your Personal Website

A proverb says that the first impression is the best information. Most of your clients and audiences cannot see you physically, yet they follow you through the website and social media. So, you have to create a professional website with a creative logo and photography loved by the audiences. The way of personal branding will be accelerated if you regulate a well-organized website. Your social media will be connecting with the personal website for authenticity.

4. Build a community

Every popular person has their own community. They make it to interact with each other easily. You can create a Facebook Group to be connecting with your audience and clients. It will give you an opportunity to engage in effective communication with audiences. A supportive community can protect you from haters. They can support you to exist in your business.

5. Assessing your performance 

Finally, evaluating your performance is the most important strategy to improve your personal branding. A proverb says that to err is human. It is very simple to do mistakes, but not good to correct them. Evaluating your performance is important because of correcting your mistake to yield better service for the audiences.


Corporate branding is to promote a company name where personal branding is to promote a person. Creating identification and differentiating from competitors imply as the objective of both corporate and personal branding. Some rules and regulations must have to follow to improve branding awareness. Most of the time, these branding strategies bring positive impacts on a company and person.

Emotional Intelligence (EQ): Importance & Characteristics of EQ, How To Improve EQ

Emotional Intelligence (EQ): The Importance of Emotional Intelligence (EQ) for Individual & Company, Characteristics of Emotional Intelligence (EQ), How to Improve Emotional Intelligence (EQ).

Emotional Intelligence (EQ)

In 1990, two psychologists Mayer and Salovey invented the term Emotional Intelligence that is also known as emotional quotient or EQ.  Emotional intelligence refers to the capability to understand, manage, and utilize your own emotions positively to release stress, communicate effectively, and empathize with others. It will assist you to overcome difficulties related to emotion and defuse social conflict. Emotional intelligence will make you able to build a stronger relationship with others that will bring success for you in the education and work sector, and finally drive you to achieve goals.

The Importance of Emotional Intelligence (EQ)

There are many areas in your life that get benefit from higher emotional intelligence such as your mental health, your job, your relationships, and so on. Emotion intelligence (EQ) emerges as a very important factor for both individuals and companies.


Emotional intelligence can direct a person on the way to leading a happy and fulfilled life. The emotional intelligence framework is a set of skills that will contribute to assessing the emotions of others as well as their own. It will deal with stress to lead a happy and enjoyable life. A prominent scholar Gary Yukl argues that self-awareness eases people to understand one’s own demands as well as evaluate alternative solutions. Emotional intelligence has to be started from yourself and you cannot instill it to other’s improvement without understanding how you regulate the emotional level. It has become a buzzword in the perspective of leadership. It will help to both recognize and control oneself emotions and responsive towards others’ emotions around them.


The researchers proposed that employees can work better who have higher emotional intelligence. They are very good at working in a team cohesively and capable to deal with challenges more effectively. Emotional intelligence is capable to make you more effective in the workplace as well as yielding good output. So, the company can utilize the effectiveness of the employees who have higher emotional intelligence (EQ).

Five Characteristics of Emotional Intelligence (EQ)

According to the book titled “Emotional Intelligence – Why It Can Matter More Than IQ”, there are five elements of the framework that define emotional intelligence such as Self-Awareness, Self-Regulation, Motivation, Empathy, and Social Skills.Five Characteristics of Emotional Intelligence (EQ) Figure 1: Five Major Characteristics of Emotional Intelligence (EQ)


Emotional intelligence instills self-awareness among people. People can perceive their emotions that have higher emotional intelligence. These people do not let their emotions either drive them or get out of control because of emotional intelligence.  They also determine to possess an honest appearance at themselves.  Many researchers believe that self-awareness is one of the most significant characteristics of emotional intelligence because it lets them know about weaknesses and strengths and how to overcome them.


Self-reflection is the capacity to control feelings and pressures. People who possess self-regulation characteristics usually never get angry and jealous of others.  Typically, they think before acting and don’t take careless decisions. Self-regulation characteristics represent thoughtfulness behavior, and they are able to say no and willing to change themselves if situations demand it.


People with higher emotional intelligence are very aware of the phenomenon that motivates them. They are highly productive, active, willing to accept challenges. They also accept the positive impact of any phenomenon. They are not stubborn to adhere to arrogance and angriness. So, they motivate others as well as being motivated by others.


In addition to self-awareness, this is another important characteristic of emotional intelligence because it makes a person open and honest. Empathy is a great competency to feel others’ emotions, needs, wants, and viewpoints. People with empathy characteristic are very good at understanding the emotion of others. Hence, the empathetic person is great at maintaining rapport. They bypass stereotyping and prejudice and withhold judgment too quickly.

Social Skills

People become very famous in their society because of having social skill competency, therefore, it has been accepted as another important characteristic of emotional intelligence.  These people act as team members, and they focus more on achieving an interdependent goal rather than an independent goal. They are very willing to help others, and they have effective communication skills with managing conflicts, and excellent at building and maintaining relationships.

How to Improve Emotional Intelligence (EQ)

Emotional intelligence can be acquired and developed by following some recommendations proposed by the researchers.

Observation of acting to others

Never get rushed to give your opinion before knowing all the facts. You should take the time to scrutinize the facts then make your decision and finally deliver your opinion. Be honest at how you think about others as well as interact with them. Show your empathy, not sympathy.

Observation of the work environment

It is important to focus on others around you at your working place instead of focusing only on you. Looking at the working environment is good quality before talking about them. You have to have humility competency and give priority to others to show their skills. Do not try to get attention for you, yet let them shine in working place.

Learn to self-assessment

A proverb says that it is easy to evaluate others’ fault but difficult to find their own fault. Take more time to assess yourself to find out the weakness you have and make to overcome them. Always encourage yourself to lead an honest life.

Learn to overcome stressful situations

You have to acquire the ability to stay calm when you confront a difficult situation. Never take any decision during an angry mood and try to control your feeling when the situation goes wrong. So, you have to learn to overcome stressful situations to acquire emotional intelligence.

Try to be an active listener

Emotional intelligent people listen actively before speaking. They never talk about the issues that are not clear to them, so emotionally intelligent people make that they have understood everything before responding. The active listener always respects the speakers and tries to learn something from them it does not matter how much good speaker they are.

Taking responsibility

It is one of the best qualities to take responsibility even though you have done something mistake instead of blaming others. You should apologize to them if you hurt someone or do any mistake to anyone. People will be more interested to forgive you if you ask forgiveness.

Possessing leadership skills

Emotionally intelligent people must have good leadership skills, and they like to follow a democratic leadership style. They maintain a high standard lifestyle as if others can follow them.  These people have an excellent ability to solve critical problems and take appropriate decisions when necessary. They also have a creative and heuristic mentality that triggers them to make the impossible possible.

 Communication skills

The most important skill is an effective communication strategy that every emotionally intelligent person has to maintain a good relationship with others around them.  It is a very important skill for personal and corporate life. Effective communication skill is the key to success in a corporate career. Emotional intelligent people hold this skill perfectly. In the digital era, communication has become easier because of the social media revolution. Nobody can deny the blessing of social media from the perspective of personal and corporate branding.


Mayer and Salovey coined the terms of emotional intelligence that becomes very popular among people for getting beneficial in both personal and corporate life. Emotional intelligence helps humans to have many good competencies such as social, intellectual, creative, organized, good communicator, self-regulated, self-aware, and so on. Nobody can deny the importance of emotional intelligence to drive oneself as well as regulate other tactically.