Business Failure Paper
RUNNING HEAD: Enron’s Failure
Enron’s Failure
Stacey A. Weinert
University of Phoenix
Abstract This paper will discuss the business failure of one of the largest energy companies in the world, Enron Corporation. I will discuss the leadership, management, and organizational structure of the company and how this failure could have been prevented.
Company Overview
Enron Corporation was an American energy company in downtown Houston, Texas. Enron employed more than 22,000 workers and was one of the largest companies dealing with electricity, natural gas, and communications. In the year 2000, Enron claimed revenues of over $100 billion. By the end of 2001, it was reported that Enron Corporation’s financial was sustained by a systematic and creatively planned accounting fraud known as the Enron Scandal. The company claimed bankruptcy in 2001, which was the largest, and most complex bankruptcy cases in United States history. By November 2004, Enron was given a plan of reorganization by the court. Enron Corporation’s name was changed to Enron Creditors recovery Corp. The company focused on reorganizing and liquidating assets. The company sold its last remaining business on September 7, 2006, which was the last chapter of Enron (Thomas, 2002).
Enron’s Failure Archie Carroll is a known business professor who currently teaches at Terry College of Business in Athens, Georgia. Carroll believes in a four-segment model of responsibility, which is composed of economics, legal, ethical, and discretionary. Economic responsibility requires the company to maximize the firm’s values. Economically, firms should maximize their shareholder’s earning by producing goods and services in demand in the market. The authorities and companies abiding by them in a strict and disciplined manner define legal responsibilities. Ethical responsibility is believed that a company should have a standard of good behavior and operate using normal ethical standards.
Enron’s Failure
Stacey A. Weinert
University of Phoenix
Abstract This paper will discuss the business failure of one of the largest energy companies in the world, Enron Corporation. I will discuss the leadership, management, and organizational structure of the company and how this failure could have been prevented.
Company Overview
Enron Corporation was an American energy company in downtown Houston, Texas. Enron employed more than 22,000 workers and was one of the largest companies dealing with electricity, natural gas, and communications. In the year 2000, Enron claimed revenues of over $100 billion. By the end of 2001, it was reported that Enron Corporation’s financial was sustained by a systematic and creatively planned accounting fraud known as the Enron Scandal. The company claimed bankruptcy in 2001, which was the largest, and most complex bankruptcy cases in United States history. By November 2004, Enron was given a plan of reorganization by the court. Enron Corporation’s name was changed to Enron Creditors recovery Corp. The company focused on reorganizing and liquidating assets. The company sold its last remaining business on September 7, 2006, which was the last chapter of Enron (Thomas, 2002).
Enron’s Failure Archie Carroll is a known business professor who currently teaches at Terry College of Business in Athens, Georgia. Carroll believes in a four-segment model of responsibility, which is composed of economics, legal, ethical, and discretionary. Economic responsibility requires the company to maximize the firm’s values. Economically, firms should maximize their shareholder’s earning by producing goods and services in demand in the market. The authorities and companies abiding by them in a strict and disciplined manner define legal responsibilities. Ethical responsibility is believed that a company should have a standard of good behavior and operate using normal ethical standards.