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Case
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Reference no. 9-395-132
Published by: Harvard Business Publishing
Originally published in: 2009
Version: 1 October 2009

Abstract

Senior managers of the AES Corp, an independent power producer, must decide whether to drop the company's emphasis on corporate values and revamp organizational controls as advised by investment analysts and outside counsel. The company is recovering from an incident of environmental fraud at one of its plants where an innovative decentralized 'honeycomb' structure has been put in place. Some believe the structure is too decentralized and that lack of controls contributed to the incident.
Location:
Size:
USD400 million revenues, 600 employees
Other setting(s):
1992

About

Abstract

Senior managers of the AES Corp, an independent power producer, must decide whether to drop the company's emphasis on corporate values and revamp organizational controls as advised by investment analysts and outside counsel. The company is recovering from an incident of environmental fraud at one of its plants where an innovative decentralized 'honeycomb' structure has been put in place. Some believe the structure is too decentralized and that lack of controls contributed to the incident.

Settings

Location:
Size:
USD400 million revenues, 600 employees
Other setting(s):
1992

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