Enron took part in transmitting and distributing electricity and natural gas all over the United States. For six consecutive years Enron was awarded the name of the "America's Most Innovative Company" by the Fortune magazine. The company was perceived as a new successful business model by the Americans.
The society depends on ethics from people, companies and the government in order for a civilized world. What happens when an unethical behavior is done? What if it is done by a large corporation, large enough to hurt the economy? The Enron scandal is an example of a historical exposure of unethical behaviors within a company and it is also one of the largest corporate scandals in America.
Enron started as a gas pipeline company. In December of Enron filed for bankruptcy. The moral concern from this scandal was the immoral practices that Enron acted upon from the pressure of potential bankruptcy and mere greed for more profit.
Enron ; being the ambitious company and profit hungry corporation expanded into new areas besides gas pipelines at an alarming rate. This was the initiating mistake; Enron bit too much that it could chew.
Many of the markets it established did not work.
One of the largest contributions towards bankruptcy was due to the wrong doings of the Sorry, but full essay samples are available only for registered users Choose a Membership Plan accountants.
The Bookeepers wrote false statements about the profits, the losses and charges that Enron had received. Enron partnered up with one of the largest accounting firms in North America. At that time which was Arthur Anderson Inc.
After much investigation it was revealed that Arthur Anderson Inc, had hidden all different kinds of losses. Its vaunted cash flow came from spurious accounting.
It would sell a subsidiary that was losing money to another company — a shell company which Enron set up, owned and financed. The balance sheets never indicated that Enron had lent this money to the shell company in the first place, that it was repaying itself and counting the repayment as income.
Investors began to have second thoughts about Enron, whose stock, having reached a high of 98 dollars a share, plummeted.
Suddenly Enron found itself in a huge credit crunch, and the corporation imploded. It turned out that many Enron executives had sold tens of millions of dollars of their stock while the public went on buying shares in the company, assured by these same executives that all was well.
While executives sold their stock, the workers woke up to find that their pension plan was worthless. Enron also invest a lot of money into politics. Since Enron invested so much in politics they were allowed to have favours from politics such as getting the Federal energy Regulatory Commissioner fired because the Enron did not like the regulations that they put on energy and electricity.
Being close with the politicians also meant not paying income taxes for five years. He was found dead considered a suicidal attempt by the Enron executive. This shows the corruption also on a moral human basis. The moral concern is the unethical practices of this large corporation.A Report On The Enron Scandal Accounting Essay Published: October 29, Enron was founded in through the merger of Houston Natural Gas and Inter North, a natural gas company based in Omaha, Nebraska.
Together with Enron, WorldCom case has become a classical tale of accounting fraud. Chris Ayres’ article entitled “Corporate America hit by Biggest Scandal in History” in The Times of London focuses on the accounting fraud at WorldCom Inc., a telecommunications giant.
Reaction Paper on Enron Case Essay Sample. Reaction Paper on Enron Case September 9, Summary: Enron’s origins date back to when it began life as an interstate pipeline company through the merger of Houston Natural Gas and Omaha-based InterNorth.
Free Essays \ Enron Case. Enron Case. Length: words. Let us write you a custom committing institutionalized, systematic and well-planned accounting fraud”. Let us write you a custom essay sample on. Enron Case. For Only $/page. ORDER NOW. The scandal is the most significant corporate collapse in the United States since the.
The American Empire. By Wade Frazier. Revised July Purpose and Disclaimer. Timeline. Introduction. The New World Before “Discovery,” and the First Contacts.
5 Behold, I have taught you statutes and judgments, even as the LORD my God commanded me, that ye should do so in the land whither ye go to possess it. 9 ¶ Only take heed to thyself, and keep thy soul diligently, lest thou forget the things which thine eyes have seen, and lest they depart from thy.