Enron
- Submitted by: 856MLISA
- Views: 798
- Category: Other
- Date Submitted: 05/22/2011 06:49 PM
- Pages: 7
- Report this Essay
Running head: ENRON Case
Enron Scandal
May 1st 2011
Lisa M. Mattis
LEG100, Business Law
Attorney Charlene Bean
Enron Scandal
In 1990, Enron was the company known for technological innovation and helped with the economic boom of the 90's. Enron consisted of two companies, Huston Natural Gas and Inter North, pipeline companies. The Huston, Texas based company, Enron was formed. Enron got in to the business of trading electricity and gas as a type of middleman for other companies for energy commodities. Before its bankruptcy in 2001, Enron employed nearly 22,000 people and was one of the world's leading electricity and natural gas utility companies, which declared revenues of almost $101 billion in 2000. Fortune magazine named Enron America’s Most Innovative Company for six years consecutively (S. Biggs, L. Biggs Helms, 2007).
At the end of 2001, the news hit the public that Enron reported their finances had been sustained by routine and creative planned accounting fraud, which is known today as the Enron scandal. Enron now is a symbol of headstrong corporate fraud and corruption. This scandal also brought many questions of how accounting practices should be recorded throughout the U.S. and was part of the reason Sarbanes-Oxley Act of 2002 was created. Enron filed for bankruptcy protection in the Southern District of New York in late 2001 (S. Biggs, L. Biggs Helms, 2007).
Describe how Enron could have been structured differently to avoid such activities.
Enron’s leaders had the work ethic of only fighting for themselves and if others got hurt it was no big deal hurting. Enron had that it’s a dog-eat-dog mentality. This type of mentality would, in the end, be the demise of Enron. Enron focused on short-term gains. The accounting strategies of Enron were corrupted by no small terms. Enron was full of corrupted people throughout several departments with growing their personal...
Enron Scandal
May 1st 2011
Lisa M. Mattis
LEG100, Business Law
Attorney Charlene Bean
Enron Scandal
In 1990, Enron was the company known for technological innovation and helped with the economic boom of the 90's. Enron consisted of two companies, Huston Natural Gas and Inter North, pipeline companies. The Huston, Texas based company, Enron was formed. Enron got in to the business of trading electricity and gas as a type of middleman for other companies for energy commodities. Before its bankruptcy in 2001, Enron employed nearly 22,000 people and was one of the world's leading electricity and natural gas utility companies, which declared revenues of almost $101 billion in 2000. Fortune magazine named Enron America’s Most Innovative Company for six years consecutively (S. Biggs, L. Biggs Helms, 2007).
At the end of 2001, the news hit the public that Enron reported their finances had been sustained by routine and creative planned accounting fraud, which is known today as the Enron scandal. Enron now is a symbol of headstrong corporate fraud and corruption. This scandal also brought many questions of how accounting practices should be recorded throughout the U.S. and was part of the reason Sarbanes-Oxley Act of 2002 was created. Enron filed for bankruptcy protection in the Southern District of New York in late 2001 (S. Biggs, L. Biggs Helms, 2007).
Describe how Enron could have been structured differently to avoid such activities.
Enron’s leaders had the work ethic of only fighting for themselves and if others got hurt it was no big deal hurting. Enron had that it’s a dog-eat-dog mentality. This type of mentality would, in the end, be the demise of Enron. Enron focused on short-term gains. The accounting strategies of Enron were corrupted by no small terms. Enron was full of corrupted people throughout several departments with growing their personal...