Enron Scandal Essay

591 WordsJul 19, 20123 Pages
The Enron scandal deals with violating employment law and bankruptcy. Employment law protects both the employer and the employee’s rights and responsibilities. Part of the employer’s responsibilities is to oversee workplace safety and standards, fair wages, retirement and pensions. The fraud committed by Enron tremendously affected the employees who had invested in what they believed to be secure company stock. These investments were made using their savings and 401k retirement funds. Because of the fraud, Enron was forced to file for bankruptcy in December of 2001. Enron Corp. was one of the world's largest energy, commodities and services company. It marketed electricity and natural gas, delivered energy and other physical commodities, and provided financial and risk management services to customers worldwide. Based in Houston, Texas, Enron was formed in July 1985 by the merger of Houston Natural Gas and InterNorth of Omaha, Nebraska. Initially a natural gas pipeline company, Enron rapidly evolved from delivering energy to brokering energy futures as energy markets were deregulated. The company began marketing electricity in 1994 and entered the European energy market in 1995. In 1999, Enron launched a plan to buy and sell access to high-speed Internet bandwidth, and it launched EnronOnline, a Web-based commodity trading site, making it an e-commerce company. The company reported revenues of $101 billion in 2000. It has stakes in nearly 30,000 miles of gas pipeline, owns or has access to a 15,000-mile fiber optic network and has a stake in electricity generating operations around the world. The collapse of Enron, the largest bankruptcy in U.S. history, led to thousands of employees losing their life savings in 401(k) plans tied to the energy company's stock. The reputation of Andersen, Enron's auditing firm, is damaged after company officials admitted

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