AES Honeycomb (A, B)

Authors: Paine, Lynn S.; Mavrinac, Sarah
Source: Harvard Business Publishing
Year: 2009
Company Name: AES Corp.
Number of pages: 28, 2

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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.