Ethical Issues In Enron Case

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The key factors or critical issues presented in the case are the rises of Enron, which originally established in Houston Texas, by Kenneth Lay. He was one of the highest paid Chief Executive Officers in 1999. The organization developed the first gas pipeline company that was globally known worldwide. The company covers the world’s leading electricity innovations, personnel management, and risk management processes. Also, to further studies the company 's dramatic fall involved the factor of the company, which forced the business to file bankruptcy. The bankruptcy was due to the companies trading strategies, which became questionable by others within the corporate sector. The financial reporting issues (showed the company as attaining loses, however, the owners and other factors of…show more content…
These factors were some mistake. Enron 's stock took a nose dive the following day, which they would never have the ability to restore these funds to this day. Then by the third quarter, their companies lost had become more intense due to the stakeholder equity Securities and Exchange Commission begins the inquiry into the organization. The CEO and CFO or Enron 's did not appear as guys that would risk criminal activity my personal perception is that they became greedy and disregarded the ethical principles. Indeed, Andrew Fastow was a longtime Skilling mentor, and Lay had always viewed him as indispensable. After Lay had become CEO again, one of his early moves was to negotiate or develop a new contract, and defend him by utilizing his position and saying "The board of directors and I continue to have the highest faith and confidence in Andy." The next day, Fastow was gone, and Lay has recently claimed that the CFO 's thievery behavior sank the company. These elements are the significant reason Enron was unsuccessful, and their shares dropped making the buyout approach increase more

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