ENRON- A Study of FAILURES Who, How, Why! Arthur Gudikunst, Ph.D. Revised: April, 2003 Professor of Finance Finance Department Bryant College Introduction: The saga of the ENRON Corporation has been unfolding in the media for well over a year. In the span of only three years, ENRON has gone from public and professional acclaim of the company and its senior executives to scorn, infamy and bankruptcy. Its public auditing firm, Arthur Andersen, has basically been destroyed, as well
ENRON Kenneth Lay formed Enron through a merger between Houston Natural Gas and Nebraska’s InterNorth in 1985. Enron was one of the worlds leading natural gas, pulp and paper, electricity, and communications companies. Enron was awarded for 6 straight years by Fortune magazine as “Americas Most Innovative Company”. During the 1980’s Enron applied for and received government deregulation. Because of this granted deregulation it allowed Enron to maintain their earnings report. These reports were
...............................................................5 4. Stakeholder and Leadership at Enron ..................................6 5. Enron’s employees ...............................................................7 6. Partnership ...........................................................................7 7. Leadership and the Organizational Culture at Enron ……...8 8. Conclusion ..........................................................................8
Enron Annual Report 2000 Enron Annual Report 2000 Enron manages efficient, flexible networks to reliably deliver physical products at predictable prices. In 2000 Enron used its networks to deliver a record amount of physical natural gas, electricity, bandwidth capacity and other products. With our networks, we can significantly expand our existing businesses while extending our services to new markets with enormous potential for growth. CONTENTS 1 FINANCIAL HIGHLIGHTS 2 LETTER TO SHAREHOLDERS
and electric companies with profits of over $111 billion dollars has now been reduced to bankruptcy and jokes on late night television. The company described is Enron which was involved in one of the biggest financial scandals of the century. Faced with the challenges of globalization, competitiveness, as well as increased profits, Enron engaged in fraudulent practices that ultimately led to its demise. After becoming one of the youngest certified public accountant in Illinois, Arthur Edward Anderson
Corporate Social Responsibility:- The Enron case was one of the biggest examples of corporate fraud that has occurred in the past twenty years. Not only the company lied about what it was doing, but it destroy the lives of so many hard working employees who had given years of service in the company. The company had published a social and environmental report, in which it is shown that what they are doing about environmental impact, its employee relations and community relations programs and its
Enron Corporation was one of the largest energy trading, natural gas and Utilities Company in the world that was based in Huston, Texas. The downfall of Enron is one of the most infamous and shocking events in the financial world, and its reverberations were felt around the globe. Prior to its collapse in 2001, Enron was one of the leading companies in the U.S and considered among top 10 admired corporations and most desired places to work at. Its revenues made up US $139 to $184 billion, assets
Enron Company’s Unethical Values Enron Corporation was an energy company based in Houston, Texas designed in 1985 by Kenneth Lay. In 2001 Enron Corporation went bankrupt; this was the leading bankruptcy in American History. The company was not doing well financially executives knew this and decided to change their financial records to hide this. The executives slowly sold their shares at an elevated price and knew that they were valueless. When everyone found out the reality of the company
Enron In 1985 the natural gas pipeline companies, Houston Natural Gas and Omaha-based Internorth, merged together to create one company by Kenneth Lay of Houston Natural Gas. (The Rise)Lay became the CEO of the new company and named it Enron. Enron was an American energy, commodities, and service company that was based in Houston, Texas. Enron, approximately, employed 20,000 staff and was one of the world’s leaders in its field. (Enron) Fortune even named Enron “America’s most innovative company”
The purpose of this case study is to evaluate Enron: The Smartest Guys in the Room, an award-winning 2005 documentary film which examines the collapse of the Enron Corporation. This evaluation is from a financial and ethical perspective. Enron Corporation (former NYSE ticker symbol ENE) was an American energy company that was originally involved in transmitting and distributing electricity and natural gas throughout the United States. It was founded in 1985 in Omaha, NB. The company later