Enron: A Good Example of Bad Ethics

It is being called the greatest business calamity in American history. Enron, the seventh largest Fortune 500 company in the nation, [1] disintegrated in a matter of days. Countless executives, employees, and retirees watched helplessly as their fortunes disappeared on with Enron. Enron, a pipeline company in Houston, was founded in 1985. It profited by promising to deliver gas to utilities or businesses at a fair market price. That changed with the deregulation of electric power markets. menial the direction of former chairman, Kenneth L. Lay, Enron expanded into an energy broker, trading electrical energy and different commodities. [2]. It generated revenues of $101 billion in the twelvemonth 2000. It markets electrical energy and natural gas, delivers energy and other sensible commodities, and provides financial and insecurity management services to customers around the world. [3]. What happened at Enron was fundamentally a departure from basic business ethics. En ron wrongly recorded positive degree gains each quarter, without considering the effects this propaganda would check on itself and on its constituents. To better themselves, Enrons executives lied to shareholders and cooked the books to produce work profits, ignoring the companys long-term financial problems.

In the last year, Enron executives made more than $100 million by exercising stock options and selling shares, while at the same(p) time, the allegedly false numbers were movement up the grade of that stock. As the crisis mounted, stocks once worth as much as $90 a share plummeted to well(p) worthlessness, an d employees, with the exception of screenin! g executives, were prevented from selling it. [4] There are thousands of sure Enron employees who are passing to suffer greatly from this debacle. They will possible lose their jobs and their loneliness savings. Whats worse, it goes deeper than that. There are many other investors who will suffer. Regrettably, it counts for more... If you exigency to get a full essay, recite it on our website: OrderCustomPaper.com

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