The Enron Board: The Perils of Groupthink

Abstract

This case study of the Enron directors' role in the scandal aims to serve as a story that allows students to see how honest, smart individuals can succumb to cognitive biases prevailing in corporate cultures. More importantly, perhaps students and lawyers will use this case study as a parable to tell themselves and their clients to avoid these behavioral defects in the first place.

Keywords: Enron, directors, groupthink, board of directors

JEL Classification: K10, K22, K31