Enrons Impact On Enron - 1417 Words

Many questioned how Enron made its money as no one could verify their revenue that they continually raised each quarter. Even with these questions in the back of people s minds, they continued to believe Enron s executives. Enron was an U.S. energy-trading and utilities company that housed one of the biggest accounting frauds in history. Enron s executives employed accounting practices that falsely inflated the company s revenues, which, at the height of the scandal, made the firm become the seventh largest corporation in the United States. Once the fraud was detected, the company quickly unraveled and filed for Chapter 11 bankruptcy on Dec. 2, 2001. (Investopedia, 2014) The first real shock came when then newly elected CEO Jeff Skilling, unexpectedly resigned, bewildering investors. â€Å"After the close of markets on Aug. 14, Jeffrey K. Skilling, the company s hard-charging president and CEO, shocked the investment community by unexpectedly resigning. In a conference call with investors, Skilling, said he was leaving for personal reasons, which would remain private. Prior to taking over the CEO post in February, Skilling had been chief operating officer.† (Stephanie Anderson Forest, 2001) After filing for bankruptcy, it became clear to the SEC that Enron fixed the prices of their stock, while hiding massive debt in special purpose accounts. It was also quite clear that the auditors for Enron, Arthur Anderson Consulting, were also deeply entrenched in thisShow MoreRelatedEnron s Ethics Code Of Enron Essay943 Words   |  4 PagesAbstracts Enron was once one of the largest companies in the world. After many years of using diverse accounting tricks, they finally had to file bankruptcy in December 2001 due to not being able to hide billions in debt. The top 140 executives got paid 680 million in 2001. (CNN Library, 2015). Kenneth Lay as the founder of Enron and Jeffrey Skilling as the chief executive were both convicted in 2006. (Weiss, 2009, p.28). Thousands of workers were left with valueless stock in their pensions whichRead MoreKey Stakeholders Affected By The Collapse Of Enron1065 Words   |  5 Pagesstakeholders affected by the collapse of Enron? Explain briefly how each stakeholder was affected. a. Stockholders at first reaped tremendous gains from their investments in Enron stock, because the company’s value rose a lot of quicker than market averages throughout the late Nineteen Nineties. In 2001, because the stock value folded, investors lost $70 billion in value. Each individual and institutional shareholders were hurt. Significantly blasted were Enron workers whose 401(k) retirement plansRead MoreEnron Scandal And Its Ethical Implications1744 Words   |  7 PagesEnron Scandal and Its Ethical Implications Introduction Enron’s collapse in 2002 was perhaps the most shocking and widely publicized ethical violations of all times. Once one of the world’s largest energy company, Enron’s downfall and the demise of its accounting firm Arthur Andersen, highlight corporate America’s moral failings. Enron was charged with substantial accounting frauds by manipulating its major accounts and by masking its massive debts. The company stock that once peaked at $90 was downRead MoreThe Ethics Code Of Enron1586 Words   |  7 PagesEnron’s ethics code Respect, integrity, communication and excellence are the ethics code of Enron. These four aspects have a crucial impact on business ethics. â€Å"Ethics requires respect. One cannot exist without the other. Ethical success depends on understanding the profound impact that respect has on your ethics and character.† As Mark S. Putnam said in his article â€Å"Respect: The Starting Point for Good Ethics†(2003), we need to make respect our obligation and show everyone a certain degree of respectRead MoreThe Ethical Dilemma Of Enron Essay1404 Words   |  6 PagesEnron was formed in 1985 following the merger of Houston Natural Gas Co. and InterNorth Co. The Chairman Kenneth Lay, CEO Jeffrey Skilling, and CFO Andrew Fastow were the backbone of Enron during its growth period. These executives exercised their power and expertise to unethically â€Å"increase† Enron’s profits by hiding the company’s debt. The ethical dilemma that Kenneth Lay and Jeffrey Ski lling faced was whether to let their stakeholders know how poorly the company was doing, or to hide the debtRead MoreEnron : The Leading Factor That Had Enron Into Its Demise Essay1608 Words   |  7 Pagesleading factor that had Enron into its demise revolves around the notion that, â€Å"companies are often so concerned with appearance and damage control that they are unwilling to engage in the degree of examination required to root out the entrenched causes of trust violations† (Hurley, Gillespie, Ferrin Dietz, 2013). The historical performance of Enron’s rising share prices, coupled to the constant positive media attentions, only added fuel to the fire in terms of Enron’s competitive culture. As aRead MoreAgency Theory : Relationship Between Agents And The Business Essay1550 Words   |  7 Pageslevels of risk. Enron, was the world’s largest energy company in 2001. Enron forerunner, Northern Gas Company was incorporated in Delaware on April 25, 1930. From this date through July 1985, Enron had hundreds of purchases and new sub-entity constructions when they acquired Houston Natural Gas Inc. (Kastantin, 2005). On April 10, 1986, the company changed its name to Enron Corporation. Enron was an interstate and intrastate natural gas pipeline company, then later in 1989 Enron started trading naturalRead MoreEnron Was Formed In 1986 By Ken Lay (â€Å"Enron Case Study†,1439 Words   |  6 PagesEnron was formed in 1986 by Ken Lay (â€Å"Enron Case Study†, n.d). It was an energy and service company based in Houston. â€Å"The early years of Enron were modest, and despite suffering financial woes and tremendous debt for several years, Enron survived.† (Rafraf Haug, 2013). Enron was the 7th largest company on the Fortune 500 in the year 2000 with assets of $65 billion an d revenue of over $100 billion (â€Å"Enron: Quality Assurance†, 2016, p 17). Despite of revenues in 2000, Enron filed for bankruptcyRead MoreCorporate Social Responsibility Of The Enron Corporation1124 Words   |  5 PagesIntroduction We will look at the Enron Corporation and discuss its application of Corporate Social Responsibility (CSR) or in actuality its irresponsible behavior as related to social responsibility. We will revisit what CSR is and discuss Enron’s philosophy regarding its use and function within the corporation. We will discuss the consequences of Enron’s irresponsible behavior and the far reaching effects it had on society. Corporate Social Responsibility are actions taken by a corporationRead MoreEnrons Ethics Code Of Enron1552 Words   |  7 PagesAbstracts Enron was once one of the largest companies in the world. After many years of using diverse accounting tricks, they finally had to file bankruptcy in December 2001 due to not being able to hide billions in debt. The top 140 executives got paid 680 million in 2001. (CNN Library, 2015). Kenneth Lay as the founder of Enron and Jeffrey Skilling as the chief executive were both convicted in 2006. (Weiss, 2009, p.28). Thousands of workers were left with valueless stock in their pensions which