Enron Corporation

1252 words, 6 pages

Intro Sample...

Business Law

Describe how Enron could have been structured differently to avoid such activities.
Enron could have been aware of the agents are doing to avoid all the scandals that were going on in its company. Enron should have never used its stock value as collateral to obtain loans from its partnership. The partners in the corporation should have known that these techniques were unethical as well as illegal. As stated by Gilman, Hamed, Navran & Brown (2010), the ten things a company can do to avoid being the next Enron includes:
Examine your ethical climate and put safeguards in place - Corporations are composed of cultures. Take a good close look at your culture.

Don’t just print, post, and pray - Codes of conduct need to be... View More »

Body Sample...

The officers can take all the blame because the president of Enron should be supervising what the officers are doing. As stated by Hamermesh & Sparks (2005),
If excessive and disproportionate officers’ liability for negligence were thought to unduly deter valuable risk-taking, corporations could simply “agree to eliminate (or place a cap on) the money damages that could be recovered from an officer for breaching the duty of care. . . . . . There is a perverse quality to this sort of argument: it could just as easily justify a default rule of strict liability of officers for their mistakes, on the theory that such a debilitating rule could be overcome by private agreement. Instead, the correct default rule should be the one that is most likely to reflect the collective (but unexpressed) best interest of the corporation and its stockholders (p. 8).
Describe the corporate culture at Enron.
 Enron’s corporate culture can be described as risk takers, adamant on growth and creative. This is the normal way of life for corporations. The problem that they faced was the integrity top executives and how they were more interested in the shareholders’ than the customers. The employees followed what the supervisors told them, so if the supervisors bent the rules, the employees followed suit. “Enron failed to create a sustainably successful corporate culture that included values such as customer service, or maximizing customer loyalty and satisfaction, which would have balance the company’s overemphasis on pure, short-term stock price” (Schuler, 2002, par. 9).
Discuss two alleged ...

Read More

Related Essays on Enron Corporation

  • Enron

    5341 words, 22 pages

    Abstract "Son, your ego is writing checks your body can't cash." (Paramount, 1986) The famous words of Admiral T.J. Cassidy in the high-flying action thriller Top Gun (Paramount, 1986) describe what occurred with Enron. Enron was a giant corporation (some say the largest energy company in the world), who depended on outside credit sources to finance its daily operations. In turn its credit-worthiness depended on its performance as reflected in the Enron's share prices. When the price of Enron's shares collapsed, so did its' credit rating. Consequently cash credit to the company became either p

    View Document »

    Enron Creditors Recovery Corporation

    1756 words, 8 pages

    Enron Creditors Recovery Corporation (formerly Enron Corporation, former NYSE ticker symbol ENE) was an American energy company based in Houston, Texas. It was formed in 1985 when Houston Natural Gas merged with InterNorth. Before its bankruptcy in late 2001, Enron employed approximately 22,000 (McLean & Elkind, 2003) and was one of the world's leading electricity, natural gas, pulp and paper, and communications companies, with claimed revenues of nearly $101 billion in 2000. Fortune named Enron "America's Most Innovative Company" for six consecutive years. This paper is based on the Enron Sc

    View Document »

    Csr Failure And Possible Solutions In The Failure Of Enron

    1483 words, 6 pages

    Enron was one of the 100 top companies to work for in America. The company was responsible and had great policies on climate change, human right and anti-corruption. Enron also had great mission and value regarding to Corporation Social Responsibility such as communication, respect and integrity.(Werther, Jr. & Chandler, 2011) However, Enron filed for bankruptcy due to corporation's 1 billion dollars debt in 2001. (Pucas, 2002) Enron made attempts to hide massive amount of debt and inflated its profit. Enron used mark-to-market accounting system. Mark-to-market works with a built power p

    View Document »

    Case Study: Enron

    1047 words, 5 pages

    Case Study: Enron Background Once the seventh largest company in America, Enron was formed in 1985 when InterNorth acquired Houston Natural Gas. The company branched into many non-energy-related fields over the next several years, including such areas as Internet bandwidth, risk management, and weather derivatives (a type of weather insurance for seasonal businesses). Although their core business remained in the transmission and distribution of power, their phenomenal growth was occurring through their other interests. Fortune Magazine selected Enron as "America's most innovative company" f

    View Document »

    Enron Case Study

    1262 words, 6 pages

    Enron was a corporation founded in 1985; named Enron after merging two companies together Internorth Incorporated and Houston Natural Gas. Enron became one of the world’s leading electricity and Natural Gas Company founded in Houston, TX. Enron’s Bankruptcy case was one of the biggest case in the United States history. Enron is a corporation, where ethics and corporation values have been abolished. The CEO and management abolished not only corporate culture, but many other rules and norms of a business. This is a case of how multimillion dollar corporation collapsed

    View Document »

    Enron Fraud Left Terrible Impact On Modern Business

    1513 words, 7 pages

    Everyday we read in newspapers about crime in financial world. One of this news came out in 2001 when Enron Corporation filed to provide information to support their activities which followed by major lawsuits and continuing bankruptcy. This story will be in history of United States and also around the world remembered forever. Many people lost their jobs, stability, shareholders lost a lot of money invested in the company, people lost their entire pension and much more, people lost their trust. It was one of the largest frauds in the history; the SEC has uncovered information on fraud c

    View Document »

    Review Of Accounting Ethics Current Business And Regulatory Environment

    1529 words, 7 pages

    This assignment will assess whether or not the current business and regulatory environment is more conducive to ethical behavior with the recent ethical corporate breaches. It will also give an overview of Enron, a company that was recently involved in an accounting scandal. It will also review how the ethical breach was recognized and how management failed to create an ethical environment. The impacted accounts and accounting guidelines that were violated will be listed and their impact to the business operation. Finally recommendations will be made on what measure

    View Document »

    Enron Failure

    1000 words, 4 pages

    The failure of Enron Corporation became a symbol of the excesses of corporations during the economic boom of the 1990s in the United States. Once billed as “America’s Most Innovative Company” by Fortune magazine, Enron became one of the largest bankruptcies in U.S. history in December 2001. The company’s collapse resulted from the reporting of false profits, and by using accounting methods that failed to follow generally accepted procedures. Internal and external controls failed to detect the financial losses disguised as profits for several years. Enron's failure was a

    View Document »

    Corporate Compliance Benchmarking

    6020 words, 25 pages

    Corporate Compliance Benchmarking Abstract The companies that were researched in this paper are facing corporate compliance issues similar to CareNetWest. Those companies must identify the compliance and governance issues and identify the best alternatives for solving them. The companies then must identify the situations and develop the opportunities the will appease and fix issues. These companies will then have come up with steps to implement the steps to adhering to governing compliance. Then, the companies have to determine the solutions in which the companies will develop a Corporate

    View Document »


    1252 words, 6 pages

    Case 2 Plenty of Enron’s financial dealings could have been deterred if Enron did not have a weak audit committee. The audit committee is like to the last line of defense before the corporation meets with the independent auditor. Enron’s financial statement frauds probably would not have gone on for so long if the audit committee was held responsible for properly reviewing quarterly financial reports, as well as the annual financial statements (http://www.corpgov.deloitte.com/binary/com.epicentric.contentmanagement.servlet.ContentDeliveryServlet/CanEng/Documents/Financial%20Reporting/Audi

    View Document »

More Popular Essays

Research help is just moments away!