Ethical Issues Of Enron

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Enron, once one of the nation 's largest corporations, valued at more than sixty billion dollars. Turned out to be little more than a series of lies, manipulation, and scams. Referred to as one former employee put it “a house of cards built over a pool of gasoline”. This in many ways was a company with a corporate culture centered on greed with no regard to ethical choices.
Kenneth Lay, founder of Enron and key player in deregulation of the energy markets that put Enron in a position to take advantage of natural gas prices floating with market trends. With ties to the Bush family that helped secure billions in government subsidies for Enron. In 1987 a misappropriation of funds had been made by two rogue traders for Enron as to whether oil
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She called Skilling basically wanting to know how Enron made their money and he bullied her saying she hadn 't done her research and wanted to throw rocks at the company. Her article was about Enron being overpriced, but in hindsight the author feels she was naive and that she knew things were worse than that. Later that year an analyst was taped saying to Skilling on the phone, "You 're the only financial institution that can 't produce a balance sheet or cash flow statement with their earnings." Opinion began to turn against …show more content…
Within months of Skilling 's quitting, Enron declared bankruptcy. All employees were terminated and given thirty minutes to leave the building. Having been encouraged to invest in the company and left with nothing while insiders sold off a billion dollar’s worth of stock.
One of the top people in Enron, Cliff Baxter, committed suicide one month before he was scheduled to testify regarding his knowledge and evidence of the scandal at Enron. In a note he wrote his inability to do good any longer and asked for his family’s forgiveness
Fastow received a ten year sentence as part of a plea agreement in exchange for testifying about other Enron executives. Skilling, pleaded innocent and poured 23 million dollars into his defense ultimately getting 24 year which was reduced to 14 after a deal with the Department of Justice for testimony against others at Enron. The firm, Arthur Anderson, was found guilty. Anderson fell and 29,000 people lost their jobs. Lay was later convicted, but died of a heart attack before sentencing. Thirty three in all were charged in connection with the scandal known as

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