Enrons Scandal Of Corporate America - 1713 Words

Enron had been the darling of corporate America: it was voted its most innovative company, adviser to US Government, a Fortune 500 top ten player, backed by the world’s biggest banks and rated by the top market analysts (Tonge, Greer, Lawton, 2003). While it is shocking to hear about ethical scandals from big corporations, this paper discusses the major reasons and lessons learnt from Enron’s scandal. Enron’s scandal wasn’t caused by few â€Å"bad apples† but the organization’s culture, as set by Enron’s leadership, was the main driving force toward unethical behavior (Kulik, O Fallon Salimath, 2008). However, it didn’t take one party to destroy this great structure; many parties were responsible for it starting with its leadership, then its auditors, and the entire US financial system that consequently learnt the lesson and have made major changes that seem to be effective nevertheless continuous follow up and close monitorin g is still necessary to avoid having another Enron in the future. Factual Background Formed in 1985 from a merger of Houston Natural Gas and Internorth, Enron Corp. was the first nationwide natural gas pipeline network. Over time, the firm’s business focus shifted from the regulated transportation of natural gas to unregulated energy trading markets (Jickling, 2002) which was perceived to be innovative outstanding business strategy that increased profits by about 90 billion over 10 years (Jickling, 2002). Enron leaders were crazy about generatingShow MoreRelatedCorporate Social Responsibility Of The Enron Corporation1124 Words   |  5 Pages 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 corporation that have positiveRead MoreCorporate Fraud Has Taken The World By Storm For Over The Past Decade1479 Words   |  6 PagesCorporate Fraud Introduction Overview Corporate fraud has taken the world by storm for over the past decade. The biggest fraud cases to ever occur happened in 2001 and 2002 and since then fraud seems to be more and more common around the world. 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(Ailon, G. 2011) Enron was bankruptcy in December 2001, and became the largest bankruptcy case in American history. It was a long-term influence on media and stock market that ‘shocked America’ (JE. Stiglitz, 2003). There are many