enron scandal

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Overview of the Corporation
Enron is a global energy corporation that was formed in 1895 in Omaha, Nebraska when Inter North acquired Houston Natural Gas (Lee, 2014). Although Enron was founded in Nebraska, the corporation decided to relocate its headquarters in Houston, Texas. Kenneth Lay who was Chief Executive Officer (CEO) of the Houston Natural Gas corporation was chosen as the CEO of the Enron Corporation and Jeffery Skilling was selected as CEO subsequent to Lay’s retirement (Enron, 2013). Enron also employed 21,000 workers in more than 40 countries (Enron scandal at-a-glance, 2002). Based on Lee (2014), the corporation produced natural gasses as the main products and it branched into numerous subsidiaries of non-energy-related fields such as Internet bandwidth, risk management, and weather derivatives which are a form of weather insurance for seasonal corporation.
In 1999, Enron launched the news broadband services unit and Enron online which were the corporation’s website for trading commodities. Eventually, it became the biggest business site in world that produced 90% of its income from trades over Enron online. The growth of Enron’s annual revenue reached into 100 billion US dollar rapidly. Since 1996 to 2001, Enron Corporation was having a massive success and it was picked as the sixth largest energy corporation globally and the seventh largest corporation in America (The rise and all of Enron, 2006). Moreover, Enron was chosen by Fortune Magazine as America’s most innovative corporation (Lee, 2014). However, the success of Enron turned out to have unimaginable scandal which the corporation hide some information in its accounts. It was found that Enron Corporation lied about its profits and was accused for shady deal...

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...tps://www.cga-pdnet.org/Non_VerifiableProducts/ArticlePublication/RecoveryAccountingProfession/RecoveryAccountingProfession_p3.pdf
Ganly, S. (2010, 23 August). How Unethical Business Conflicts can be Avoided. Inside Business 360. Retrieved on 31 May 2014 from http://www.insidebusiness360.com/index.php/how-unethical-business-conflicts-can-be-avoided-9679/
About us. (2014, 1 April). ACCA. Retrieved on 31 May 2014 from http://www.accaglobal.com/gb/en/discover/about.html
Code of Ethics and Conduct. (2011). ACCA. Retrieved on 31 May 2014 from http://www.accaglobal.com/content/dam/acca/global/PDF-members/2012/2012c/CofEC.pdf
Gilman, S., Harned, P., Navran, F. & Brown, J. (2009, 29 May). Ten Things You Can Do to Avoid Being the Next Enron. Ethics Resource Center. Retrieved on 31 May 2014 from http://www.ethics.org/resource/ten-things-you-can-do-avoid-being-next-enron

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