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- Date Submitted: 01/16/2011 09:29 AM
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The Enron Scandal
The Enron Scandal
Business scandals are so insightful that become a symbol of deliberate corporate fraud and corruption in the history of our country. This profound and intentional act of fraud has impacted our most deeply beliefs in honesty, integrity, and confidence in the corporate world. The integrity of business in our culture is crucial to the success of our economic system. When companies maintain the essential of business law and ethical practices, it provides stability and success in any corporation. The Enron Scandal was the biggest disgrace of Fraud, Greed, Bankruptcy, Misguidance, and Imprisonment.
Enron was an American energy corporation based in Texas. Enron overtook the operation of power plants and pipelines around the globe and after fifteen years Enron became the nation’s seventh largest company in the country. It began with natural gas and later helped to transform once disparate markets into a seamless trading platform, connecting inefficient trading centers. The company’s growth was due to several illegal activities. The name Enron was founded in 1985 and later expanded into other related sectors, such as wholesale trading of electricity. They reassure investors with their experience and knowledge of the market and they always guaranty deliveries. Enron could effectively tie supply and demand together. In many large corporations the Chief Executive Officers and upper management level employees manipulate their accountants so that they can engage in the balance sheet transitions to make the company look more profitable or less profitable even they can estimates future earnings. The firm's revenues of $101 billion made it the darling of many investors and the pride of its employees.
Enron's market capitalization quintupled during the last five years of the millennium, reaching $63 billion in early 2001. In 2001, when one partnership deal was properly accounted for by Enron's outside auditor, Arthur Andersen, large quarterly losses...