Essay On Enron

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THE ENRON SCANDAL by Abhimanyu Ravindranath
Overview of Enron[1]
The antecedent to the American multinational company Enron was the Northern Natural Gas Company which was founded in Omaha, Nebraska in the year 1932. It was redesigned in 1979 as the fundamental subsidiary of a holding organization, InterNorth which was an enhanced energy and energy related items organization. InterNorth was a significant business for gas generation, electricity and was a pioneer in the plastics business. InterNorth was later sold to Physicians Mutual. In 1986, Kenneth Lay became the CEO after the departure of the first CEO of Enron Corp Samuel Segnar. Kenneth Lay moved the organization’s headquarters to Houston, TX and began to change the way the business operated.
After shifting the HQ to Houston, the company started to lose its diversity after auctioning its assets in the chemical subdivision Northern PetroChemicals, and began taking in Enron CoGeneration, the TransWestern Pipeline etc. Early budgetary experts speculated that Enron was gathering extraordinary debt and the sale of its operations would not take care of the issue.Enron was involved in energy, commodities and services. It was one of the world’s largest companies leading in the areas of electricity, natural gas, broadband and paper and employed more 20,000 staff worldwide. At one point, it was given the title of the most innovative American company by Forbes magazine. Enron was also involved in petrochemicals, weather risk management, principal investments, shipping, risk management for commodities and water. It was sub divided into 7 business units at the time of its bankruptcy.
Enron International was Enron’s wholesale asset administration business. Its primary goal was the c...

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...ust, since trust is more important than money.

Works Cited

[1] Wikipedia contributors. "Enron." Wikipedia, The Free Encyclopedia.
[2] The Guardian, “Enron's Jeffrey Skilling sees jail sentence reduced to 14 years”, June 2013.
[3] Wall Street Journal – “Arthur Andersen Admits It Destroyed Documents Related to Enron Account”, Jan 2002.
[4] NY Times, “Enron’s collapse: The overview; Enron Auditor Raises Specter of Crime”, Dec 2001.
[5] Homeland Security and Governmental Affairs, "Retirement Insecurity: 401(k) Crisis at Enron", 2002.
[6] NY Times, “Enron Forced up California Prices, documents show”, May 2002.
[7] “The Real Lesson of Enron’s Implosion: Market Makers Are In the Trust Business”, R.McAfee, 2004.
[8] The Sarbanes-Oxley Act, 2002, soxlaw.com
[9] “The Enron Scandal and the Neglect of Management Integrity Capacity”, Joseph A. Petrick, Robert F. Scherer, 2003.

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