Enron scandal

Such immense faith and commitments is invested in the leader. The leadership in Enron was aimed to creating an aura of charisma among the leaders and eventually creating major defects identified in (Conger, 1990). The leaders cultivates a compelling and captivating self image, enjoy a lifestyle of great luxury, has total authority and build their eminence and maintain their grip on their followers. As such immense faith and commitment is invested in the leader. Enron’s leadership aimed at…

Fall of Enron” was written by Bethany McLean and Peter Elkind and was published in 2003. It was all about the company of Enron and the downfall of it all and the scandals associated with it. Enron was an American energy, commodities, and services company which was located in Houston, Texas. At one point in time, it was the 7th largest company worth almost about $70 billion. There were many scandals involved in all of this, but before I get into detail about those, the book says how fast Enron…

They had deals in areas such as weather derivatives, water services, metal trading, broadband supply and power plant. Soon enough, Enron had more contracts than any of its competitors and could predict future prices with great accuracy. Enron seemed to always have steady, high profits. Behind the scenes, however, there was much more to it. Starting with the Vahalla scandal, the board learned that Louis Borget and Tom Mastroeni were gambling beyond their limits, destroying trading reports,…

Enron used the practice of posting profits on potential instead of actual gains and used Arthur Andersen accounting firm to cover any losses through the misuse of special purpose entities (SPEs). Arthur Andersen, was old and well-respected; no one believed it would be party to corporate fraud, making Enron seem squeaky-clean. Retrieved on 23 October 2017 from http://www.mademan.com/mm/enron-scandal-summary.html (Links to an external site.). This scheme was working until Enron decided to falsely…

1. The fall of Enron is mainly cause by the leaders which act unethically to their company. One of the big factors for the collapse of Enron is self-interest. Leaders in Enron only care about their own interest instead of their company and employees. Basically they ignore what would bring the pros to their company yet only pay attention to their own benefits. Greedy mind made them lost their interest in working and bring the company to another next top level and also led them to act unethically.…

With respect to the Enron case, there were initially two red flags leading to the fraud that should have been noted and thoroughly reviewed: (1) Enron and other corporations previously pressed for deregulation of the energy industry, and (2) lack of monitoring the industry and corporation practices by the government after deregulation (Albrecht. Fraud Examination, p. 431). After the deregulation of the industry, many corporations were, more or less, free to do as they please, which provided the…

The film ENRON: The Smartest Guys in the Room painted a picture of corporate greed and all the practices one might see in the creation of fraud. It dove into personalities of the top executives surrounding the scandal and the lies created to establish a successful persona. The governmental investigation revealed that the intricate entanglements of deceptive communications were fed from near the top of the chain to traders, analyst, and investors. Traders proactively drove the mechanisms that…

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…

the business world was rocked by a series of scandals in the business sector and many of which involved suspicious accounting activities. One of the largest of these failures was a company known as Enron. Due to their involvement with Enron, the Enron debacle is sometimes referred to as the Enron/ Arthur Andersen scandal. The inclusion of Arthur Andersen in the Enron scandal was due in part to the fact that Andersen handled the accounting for Enron for approximately sixteen years. As a result,…

The documentary “Enron: The Smartest Guys in the Room” deals with “one of the most America's largest corporate bankruptcy”, as it reports the documentary itself. In fact, few years before the bankrupt, Enron was the 7th largest corporation in the USA that took 16 years to go from 10 billion assets to approximately 65 billion, but in only 24 days it went bankrupt. The movie describes and analyses how the company grew and then collapsed quickly and surrounded by a gigantic scandal that can be seen…