Enron the rise and fall Essay

Submitted By corriejhnsn41
Words: 703
Pages: 3
Open Document
Running Header: Unethical Business Research

Unethical Business Research
Corrie Johnson Res/351 December 23,2013 David Dean Gualco

Enron was among the largest trading firms in the area of energy, communication, and natural gas in the nation. Ken Lay originated it in 1985 in Houston, Texas with the intention of liberating businessmen from government regimentation. However, Enron leaders set the wrong tone by not establishing an ethical committee to monitor the decisions of the company, who would also be in charge of the hiring process and the research of members, to employ people with strong ethical standards. Also, an ethics committee would also monitor financial administration of the company. Financial areas of a company must connote ethical order to avoid unethical practices from occurring. After merging Houston Natural Gas, the growth was on the rise to an empire. Portions of the country gas and power were Enron. By 1995 Enron was succeeding with providing power and gas throughout the country, transforming the company to an unimaginative regulated business to a cutting edge innovative energy trading post. Enron thriving company was a force made for the company to change their mantra from “ to become the world’s first natural gas major” to the world’s leading energy company”, implementing a tone with a reputation of having a culture of arrogance that led people to believe that they could handle large amount of risk with out engaging any danger.
The Enron downfall is a tale of arrogance, greed, and grossly unethical behavior along with bad hiring decisions. Jeffery Skilling became an employee of Enron to develop a team of executives that can navigate their way around the fraudulent records of finances. Meanwhile, their main goal was to grossly overestimate profits to maneuver hundreds of thousands of dollars of debt off the books to navigate stock prices up. Then more than 25 executives sold off billion dollars of their stock before the company finds out what hit them. The CEO and Director embezzled an ample amount of money from employees, consumers, and investors. Which in return ultimately is the ultimate cause for the company to go bankrupt. Enron executive performance is unethical in all aspects to gain a profit, destroying, consumers, stakeholders, and the company. As a result of the scandal, changes were made and the General Accepted Accounting Principle was innovated to prevent these types of unethical accounting practices to happen in the future with other companies. While consumers and stakeholders are beginning to understand the importance of verification, validation, and authentication of corporate claims about business performance. Intelligent, responsible corporations will help this process develop and become leaders in business authenticity.
It is also a story accompanying an emphasis on decentralization were insufficient internal control of operations and finance, as well as chairman, complaint board of directors, and an impotent staff of accountants. Also, the innovation of each division and
Show More

Related Documents: Enron the rise and fall Essay

Essay about Enron individual write up

For our FIN 346 Investments final project, my group and I decided to conduct research on the Enron Scandal that occurred in 2001. Often times, people refer to the Enron Scandal as “The Greatest Company Scandal in U.S. History” because of the effect it had on our population. We chose this topic because it not only demonstrated how unexpected events affect the stock price of a company, but also how the lack of corporate governance can drive a company to the ground. Throughout our project, we came across…

Words 1208 - Pages 5

Enron and Enron Finance Corp Essay

source of Enron’s income. Because of this, unethical traders and accountants at Enron were able to take advantage of this lack of understanding and oversight to hide deficiencies in the company’s balance sheet. As a result, the company imploded, causing thousands to lose their jobs, millions to lose their investments, and initiating a major change in the way that corporations practice accounting. Early Years Enron was created in 1985 as the result of a merger between Houston Natural Gas and InterNorth…

Words 672 - Pages 3

Enron Summary Essay examples

Weiyu Shang MGT502 Enron Review Enron used to be the seventh-largest company of the Fortune 500. As an energy firm, Enron supplies natural gas, electricity and communicates with customers. Its services are around the world including trading energy, building power plants and transport equipment. In 1999, the company launched its broadband services unit and Enron Online, the company's website for trading commodities, which soon became the largest business site in the world. The corporate culture…

Words 502 - Pages 3

Enron's Business Ethics Failure Essays

Content 1. Overview ............................................................................................3 2. The Fall of Enron ...............................................................................4 3. Enron's ethical dilemmas ..................................................................6 4. Conslucions .......................................................................................7 5. Bibliography .....................................................…

Words 1463 - Pages 6

Enron and Company Essay

Enron In 2001 Enron one of the largest financial investment firms was caught up in one of the largest scandals for abuse of business ethics and financial fraud of our time. The company had ties all the way to the White House and left in its wake financial chaos and destroyed lives and reputations. This paper will discuss some of the questions as to why it happened, how it occurred and the various ways the scandal brought to light corporate abuse in the business world. First we must look at a…

Words 1908 - Pages 8

Sarbanes-Oxley Act Of 2002

is possible. These are the consequences the investors and employees of Enron Corporation endured after the Enron scandal started to unravel. This paper will focus on the infamous accounting scandal of Enron Corporation. It will also discuss how the company was able to fool investors by producing misleading financial statements, why they were not caught sooner, and new regulations enacted in response to the scandal. Enron Corporation was a leading American energy company located in Houston, Texas…

Words 2814 - Pages 12

Enron Case Study Essay

on Alex Gibney’s film version of the rise and fall of Enron, do you accept Joel Bakan’s argument that the corporation shows “psychopathic” traits? I agree with Joel Bakan, however, just partially about the corporation Enron showing ‘psychopathic’ traits. Yes there are traits that they were doing unethical actions that completely ruin many people life-long works and their lives; nonetheless, in my opinion, those actions were intentional. The executives at Enron were gambling intelligently, according…

Words 951 - Pages 4

Essay about A Lesson From Enron Collapes

10.1177/1081180X02238781 Press/Politics Madrick / Financial 8(1) Winter Reporting 2003 and Enron ARTICLE Feature Article Financial Reporting 1 Lessons of the Enron Collapse Jeffrey Madrick Alex Jones:Jeffrey Madrick’s The End of Affluence was a notable book,and he has a new one coming out titled Why Economies Grow. He is a regular contributor to The New York Review of Books; a contributing columnist to The New York Times business section; the editor of Challenge, which is a long-standing economics…

Words 2214 - Pages 9

What Is Separation Of Ownership And Control

Separation of Ownership and Control Rise of Agency Problem In large corporations, shareholders are owners of the company. Managers are employed and are expected to act on behalf of them to maximise shareholders’ wealth. However, it is human nature for managers to put their self-interests ahead of the shareholders’ and do what is in their own personal best interest. Figure 1.1 Fisher Separation Theorem (Fonseca, n.d.) According to Fisher Separation Theorem (Fisher 1930), managers’ decision to invest…

Words 1850 - Pages 8

Essay about Enron Organization

The Business of Enron The Enron Corporation was created in 1985; its founder Ken Lay, had a PHD in economics, and assumed the position of the CEO then founded the board of directors as the Chairman. The company was based out of Houston, Texas and its main focus was the purchase and selling of energy, specifically electrical power. Ken Lay hired a gentleman named Jeff Skilling to be his Co CEO; he also became the president of the Enron board of directors. Skilling was a very intelligent man who got…

Words 2573 - Pages 11