Essays on Enron Scandal

The way I would describe the culture at Enron is toxic and unethical. Executives used corruption, greed and deception to ensure share prices remained high. Our textbook defines an aggressive organizational culture as “companies who value competitiveness and outperforming competitors”. This term applies to Enron’s culture because Enron was driven by money and they were willing to do whatever it took to get ahead. The immoral behavior of the executives of Enron played a huge role in the fall of ...

In a nut-shell, Enron scandal is purely based on the misused of powers and authority. What I learn from it is that we should not misuse the power to our benefit. One should be true and loyal to its work and responsibilities. The top level management is purely responsible for such acts. They should perform their duties faithfully to minimize the chances of such activities. Moreover, as a top manager, we should make work our priority. If we do so, the greed would not take over us.The ...

To analyze the role of financial instruments in the downfall of Enron, a suitable starting point would be to clearly define a financial instrument. A financial instrument is a representation of an ownership interest claim or the contractual or contingent claim to receive or deliver cash, another financial instrument, or asset, and can either be a cash instrument like cash, securities, loans, bonds, notes, and equity, or a derivative instrument such as forwards, futures, options, and swaps. ...

People see the Enron story as a story about numbers, and that it’s about all of these complicated transactions but in reality it’s a tragic story about people and a failure of ethics from the top. The rise and fall of Enron can be laid at the feet of the company founder, his successor, and the chief financial officer. Each of them failed to meet the important ethical dilemmas of leadership. Enron rewards employees for monetary gain, and fired the bottom 15% of performers, no matter how ...

This paper examines what went wrong inside Enron Corporation. The paper presents what went wrong with Enron’s decision-making, leadership, and further uncovers the conflicts that ultimately contributed to the company’s demise. Review of the company’s history, and the abundant amount of information available on Enron Corporation, this paper exhibits how Enron’s executive compensation policies and ineffective shareholder and management alignment allowing for management’s excessive stock-option ...

On July 1985, Houston Natural Gas merged with InterNorth; a natural gas company established in Omaha, Nebraska, and together formed the modern-day Enron. The Enron Corporation began bartering natural gas commodities, and by the early 1990's, the company became the largest natural gas merchant in North America and the United Kingdom. Soon after in 1994, Enron North America began selling electricity and eventually becomes the largest marketer of electricity in the United States. Before the ...