When the Enron Corporation went bankrupt in 2001,this collapse was the largest corporate failure in history and the name has since become synonymous with corporate fraud.Enron's board of directors failed to monitor,question,or analyze the company's management and business practices,and billions of dollars' worth of unscrupulous activities were conducted to make Enron look more financially stable than it was.Though the board had access to evidence that something was wrong with Enron's business practices,a culture had developed in which conformity was encouraged and diverse views not acceptable.In other words,Enron fell prey to
A) social facilitation.
B) group polarization.
C) social loafing.
D) groupthink.

Question

Quizplus · Accepted Answer

Enron's board of directors fell victim to groupthink, a phenomenon in which group members prioritize consensus and conformity over critical thinking and independent decision-making. They failed to question the company's fraudulent practices and accepted the opinions of the dominant members without considering their accuracy.

When the Enron Corporation Went Bankrupt in 2001,this Collapse Was