becoming president of the then Continental Resources Company, he continued his career in the energy industry, claiming jobs in Transco Energy Company, Houston and three years later Houston Natural Gas Co. as Chairman and CEO. In 1985 a merger with InterNorth gave birth to Enron, one year later, Kenneth Lay was appointed Chairman and CEO of this company as well (biography.com). He used the boards’ lax oversight to forge political alliances and compromise members of the board itself. Kenneth Lay
Introduction "Change is hard because people overestimate the value of what they have and underestimate the value of what they may gain by giving that up" (Belasco & Stayer, 1993). Is the concept of “too big to fail" an accurate term in today’s economy, or does it depend on a company’s ability to undergo change and reinvent itself? More than a decade ago, it seemed almost impossible that the seventh largest company in the Unites States, Enron, would decline so quickly. As change agent, I will analyze
out of Houston, Texas. Enron was created by the joining of two natural gas companies, InterNorth Inc . of Omaha, Nebraska and Houston Natural Gas. Enron had a rapid rise to become one of the biggest corporations in the United States at the time and also became one of the biggest business collapses in United States history. I will talk about how Enron came into existence and how it ultimately failed. InterNorth was based in Omaha, Nebraska and specialized in natural gas pipelines and also was involved
as where improvements could have been made to improve organizational trust and ethical culture before Enron’s collapse. II. Corporate Facts and History According to the Texas State Historical Association, organized in Omaha, Nebraska in 1930, InterNorth began as Northern Natural Gas Company.1 With revenues up to $7.5, it was one of the nation 's premier pipeline networks. 1 To avoid potential takeover from corporate raiders, CEO Sam
changes its name to InterNorth, Inc. Its attempted hostile takeover of Crouse-Hinds Co., an electrical products manufacturer, is thwarted by Cooper Industries. Northern Overthrust Pipeline Co. and Northern Trailblazer Pipeline Co. are set up to participate in the Trailblazer pipeline. Creates two exploration and production companies, Nortex Gas & Oil and Consolidex Gas and Oil Ltd. 1982: Forms Northern Intrastate Pipeline Co. and Northern Coal Pipeline Co. Establishes InterNorth International, Inc
the oil and energy crises of the 1970’s. Houston Natural Gas Company’s (HNG) CEO Kenneth Lay engineered a merger with Internorth Incorporated (Internorth) (Free, Macintosh, Stein, 2007, page 2), the CEO of Internorth, Samuel Segner, resigning six months following passing the title and responsibilities of CEO to Kenneth Lay. Enteron was born shortly afterwards as the HNG/Internorth merger rebranded first to Enteron then quickly shortening this to Enron in 1986. This newly formed company owned the second
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
The Eron Scandal is thought to be a standout amongst the most famous inside American history. An Eron of occasions is considered by numerous students of history and market analysts alike to have been an informal outline for a contextual investigation on White Collar Crimes. ("Enron Scandal Summary - Finance | Laws.com," n.d.)White Collar Crime is characterized as peaceful, monetarily based criminal action ordinarily attempted inside of a setting in which its members hold propelled training as to
the most important accounting scandal of our lifetimes. Enron was an American gas company that began as the Northern Natural Gas Company in 1931. Internorth, a holding company in headquartered in Omaha, Nebraska, purchased the Northern Natural Gas Company and reorganized it is 1979. Enron arose from the 1985 merger of Houston Natural Gas and Internorth. After building a large, new corporate headquarters in Omaha, in 1986 the new Enron named former Houston Natural Gas CEO Kenneth Lay as CEO of the
The Enron scandal Question 1: What happened to Lay, Skilling and Fastow? Kenneth Lay created in 1985 after assimilation InterNorth and Houston Natural Gas . Later, he employed the likes of Jeffrey Skilling and Andrew Fastow, who were to be involved with him in committing gross accounting misconducts. Together with these men and many others, Lay hid huge sums of cash in debt from unsuccessful contracts and plans. This was possible through the use accounting loopholes, poor financial reporting and
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
According to Jennings (2006), “All companies experience pressure to maintain solid performance” (p. 17). Marianne Jennings book, The Seven Signs of Ethical Collapse: How to Spot Moral Meltdowns in Companies Before It’s Too Late, centers around seven warning signs or seven common traits pattern to ethical collapse in companies. In her book, Jennings identifies the seven common ethical signs of moral meltdowns in companies to be: (1) pressure to maintain those numbers; (2) fear and silence; (3) young
Reputation is a company’s biggest asset so you would think that organisations would avoid engaging in any sort of business that would put its reputation in jeopardy. Nevertheless, many organisations find their credibility destroyed due to practices that are harmful and illegal, which could land a CEO’s in prison. The Enron Scandal, which unrolled in October 2001, lead to the bankruptcy of the Enron Corporation, an American energy company based in Houston, Texas, and the de facto dissolution of
Enron scandal. The film does a wonderful job of depicting the downfall of Enron and how the corporate culture and ethics were key to Enron’s fall. As the movie suggests, Enron is “not a story about numbers, it is a story about people.” In 1985, InterNorth, a large energy and natural gas pipeline company acquired Kenneth Lay’s company, Houston Natural Gas, in an attempt to thwart a takeover. The newly converged company would later be named Enron. Kenneth Lay was named chairman and CEO very early on
Enron started about 18 years ago in July of 1985. Huston Natural Gas merged with InterNorth, a natural gas company. After their merge they decided to come up with a new name, Enron. Enron grew in that 18-year span to be one of America's largest companies. A man named Kenneth Lay who was an energy economist became the CEO of Enron. He was an optimistic man and was very eager to do things a new way. He built Enron into an enormous corporation and in just 9 years Enron became the largest marketer of
such an accounting scandal occurred was with Enron from the late 1990s until the end of 2001. Background information Enron Corporation was born in 1985. The government had started deregulation of natural gas pipelines, and Houston Natural Gas and InterNorth, two existing companies merged to create Enron. The deregulation of the gas pipelines however, caused Enron to not have exclusive rights to pipelines and because of the merger, Enron had a lot of debt. To keep itself afloat the company needed a
CEO Kenneth Lay’s ambition for ENRON a company he had helped form went beyond the business of piping gas. Enron went to become the largest natural gas merchant in North America and the United Kingdom. But the reality is, this company business model never worked. This was a company that was so desperate to win Wall Street 's respect that it kept it stocks shares prices going up despite the losses it was incurring in order for executives to keep lining their own pockets. Over the course of this Case
activity, Enron was also one of world’s major electricity and natural gas companies and was named “America’s Most Innovative Company” by Fortune magazine six years in a row. In 1985, Kenneth Lay, founder and CEO of Enron, merged Houston Natural Gas and InterNorth, Inc. to form Enron. By 1992, Enron became one of the largest sellers of natural gas in North America and in 1999, the Enron Online trading website had to be created to manage its trading business. Enron’s European Gas Trading team created Enron
deception of reports and statements that gave a very inaccurate and misleading view about the company. The Organisation, Time and Place Enron Initiated as an interstate pipeline company through the merger of Houston Natural Gas and Omaha-based InterNorth in 1985.(The rise and fall of Enron: a brief history, 2006) With this merge the previous CEO of Houston Natural Gas, Kenneth Lay, advanced and became the new CEO of Enron. He was very quick to rebrand Enron into an energy trader and supplier.
Abstract In chapter 3 of the Crime and Justice in America textbook, Joycelyn Pollock provides information about the three theories of crime. These theories help us to explain the motivation behind different criminal acts. The reasons why one would commit a crime may be due to biological, psychological, or sociological influences. This paper will explore the high profile cases of The State vs. Casey Anthony and The United States vs. Enron, and link them to one the theories of crime causation detailed