The Scandal Of Enron Corporation Essay examples

The Scandal Of Enron Corporation Essay examples

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The Scandal of Enron Corporation
Enron Corporation was an American commodities, energy, and services company that was based out of Houston, Texas. This corporation was founded in 1985, resulting from the merger between InterNorth and Houston Natural Gas, these were both moderately small businesses in the United States. Before Enron’s bankruptcy on December 2, 2001, it had nearly 20,000 employees and was one of the global leaders in the communications, electricity, natural gas, and pulp and paper market, with declared earnings of approximately $101 billion during 2000. Enron was termed “America’s Most Innovative Company” by Fortune for six years in a row.
It was discovered that Enron’s stated financial condition was prolonged by established, inventively, and methodically planned accounting fraud at the end of 2001. It has been since called the Enron scandal. Enron has subsequently become a popular example of deliberate corporate corruption and fraud. This scandal additionally caused the accounting methods and activities of many business corporations in the U.S. to come into question. The Enron scandal was also an influencing factor in the passing of the 2002 Sarbanes-Oxley Act. This scandal furthermore altered the corporate world by triggering the disbanding of the Arthur Andersen accounting firm.
Enron filed for bankruptcy in late 2001 in New York’s Southern District and it designated Weil, Gotshal & Manges as its bankruptcy counsel. Its bankruptcy came to an end during the November of 2003, pursuant to a plan of restructuring that was approved by the court, after one of the most complicated bankruptcy cases in the history of the United States. The new directors’ board renamed the business to Enron Creditors Recovery Corp., and s...


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...t had been concealed to a degree. Some executives were too worried about saving themselves that they did not think of who was going to be affected by this scandal though. Not only were employees of Enron affected, but all of its investors as well. The employees were affected by loss of jobs and some even their life savings. Investors lost all of their investments, some possibly even their life savings. There was an alternative response that Enron could have taken though. When the upper-level executives of Enron knew that the company was going to collapse, they should have warned their employees or at least allowed them to sell their stocks without penalty of losing their 401k’s. Also they should have warned their investors once they knew the company was going to fail. This negligence, caused thousands if not millions of people to suffer and lose their life savings.


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The Scandal Of Enron Corporation Essay examples

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