Enron Case
Introduction
After watching the video “Enron: The Smartest Guys in the Room”, (Youtube), several issues came into light. It is known that Enron has been the seventh largest company to declare the bankruptcy in the year 2001. The reasons of their bankruptcy were becoming clear as many investors lost millions of dollars, due to which the lawmakers sought to enact some legislation so that these activities could be prevented. Obviously the smartest people from Enron had entered various questionable transaction with the customers and different entities. During the booming years in the decade of 1990s, they resorted into aggressive business activities. Many of these activities were questionable. The shareholders came to know about these activities and this was also corroborated by new CEO of the company Jeffrey Skilling. There were the questionable transactions and this triggered the loss of confidence on the company. A solvent company became bankrupt due to lack of public trust and the severe liquidity crisis.
Ethical lapses …show more content…
A company which took years to build, like approximately 16 years, where it grew from 10 billion dollar company to 65 billion dollar company, and it would collapse in mere 24 days was nothing short of a scandal. In fact this was to take the shape of a huge scandal. Certainly there was something being hidden from the view of public. For one, there indeed was a fatal flaw as there were several ethical issues. As per the video, there were the issues like arrogance, intolerance, greediness and cheating. Many senior executives were in fact blinded by the money that they could not see that they would sink their own boat on which they were
Introduction
After watching the video “Enron: The Smartest Guys in the Room”, (Youtube), several issues came into light. It is known that Enron has been the seventh largest company to declare the bankruptcy in the year 2001. The reasons of their bankruptcy were becoming clear as many investors lost millions of dollars, due to which the lawmakers sought to enact some legislation so that these activities could be prevented. Obviously the smartest people from Enron had entered various questionable transaction with the customers and different entities. During the booming years in the decade of 1990s, they resorted into aggressive business activities. Many of these activities were questionable. The shareholders came to know about these activities and this was also corroborated by new CEO of the company Jeffrey Skilling. There were the questionable transactions and this triggered the loss of confidence on the company. A solvent company became bankrupt due to lack of public trust and the severe liquidity crisis.
Ethical lapses …show more content…
A company which took years to build, like approximately 16 years, where it grew from 10 billion dollar company to 65 billion dollar company, and it would collapse in mere 24 days was nothing short of a scandal. In fact this was to take the shape of a huge scandal. Certainly there was something being hidden from the view of public. For one, there indeed was a fatal flaw as there were several ethical issues. As per the video, there were the issues like arrogance, intolerance, greediness and cheating. Many senior executives were in fact blinded by the money that they could not see that they would sink their own boat on which they were