Enron And Corporate Culture Centered On Greed Essays

Enron And Corporate Culture Centered On Greed Essays

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Enron once the nation 's seventh largest corporation, valued at more than sixty billion dollars. Turned out to be little more than a series of lies, manipulation, and scams. Referred to now as a house of cards built over a pool of gasoline. This in many ways was a company with a corporate culture centered on greed with no regard to ethical choices.
Kenneth Lay founder of Enron and key player in deregulation of the energy markets that put Enron in a position to take advantage of natural gas prices floating with market trends. With ties the Bush family that helped secure billions in government subsidies for Enron.
In 1987 a misappropriation of funds had been made by two rogue traders for Enron as to whether oil prices would rise or fall, known as the Valhalla Scandal Oil. Trading is like gambling, sometimes you win, and sometimes you lose. But Enron oil always seemed to win. Questions began to emerge as president Louis Borget was indicated to transferring 3 million into a personal account. An internal audit revealed that Borget and his trader were manipulating earnings, destroying daily trading records, and probably gambling beyond their limits. This could potentially be one of numerous points in history where Enron Exec’s made unethical decisions that would lead them down a path that would affect so many lives. When brought to Ken Lay’s attention the decision was made to make no changes, no one was terminated, or even disciplined the reason behind the decision was that it was the only division within the company that was making a profit. Instead he sent a memo to Borget stating “Please keep making us millions” and encouraged them to gamble even more.
Jeff Skilling former CEO and mastermind of Enron Finance Corp. converted the com...


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... by the FEC. The stock plummeted. Lay tried to assuage the fears of investors while his accounting firm got busy shredding over one ton of papers. Lay publicly stuck up for Fastow in public (and cashed in millions of dollar’s worth of his own shares of Enron) and then the next day Fastow was fired. He became the fall guy, but in time it became clear that many, many people were involved in the scam.
Lay never took responsibility or blame. He said he was betrayed by Fastow. Within four months of Skilling 's resignation Enron declared bankruptcy. All employees were released and given thirty minutes to leave the building forever. They felt like they were sinking on the Titanic without lifeboats, as one former worker recalls. They had been encouraged to invest in the company and they lost everything. Only the insiders sold off their stock early - a billion dollar’s worth.

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