The Rise And Fall Of Enron

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The Rise and Fall of Enron Introduction Enron began as the Northern Natural Gas Company, which was formed in 1932 in Nebraska. Later it turned into the InterNorth Company which was the leader in natural gas production at the time. In 1985, a separate company that separated from InterNorth Inc. later became what we now know as Enron. Former CEO of InterNorth, Kenneth Lay moved the company to Houston and began his journey as CEO of Enron. In 1990, Enron’s CFO Jeff Skilling hired a well knowledgeable businessman by the name of Andrew Fastow who was well known for his works in the deregulation of the energy market. Enron’s company grew mainly due to the marketing and promoting its stock prices. Ex-employees stated the company posted current stock prices in elevators, bathrooms and other available areas of the building. From 1996 to 2001 they were named “America’s Most Innovative Company” by Fortune magazine and also made the “100 Best Companies to Work for in America in 2000. The case of Enron is said to be a “smoke and mirrors” act dictated by top executives presenting the positive financial wealth of the company. Shareholders, lower executives, employees, and most American’s were not aware of the grieve financial trouble the company was enduring. Company Culture Enron’s motto was “respect, Integrity, Communication and Excellence” and along with that its Vision was “Treat other as we would like to be treated ourselves…” Both the motto and vision were inconsistent with the actual company procedures. Enron had a much different approach to the company culture and reward system they actually used. Competition was the main concept; which led to numerous financial mistakes in future years. In the movie, Enron The Smartest Guys in the Room, traders discussed the unethical actions that were part of the company’s culture. Traders were encouraged to

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