Enron Case Study Report Essay 1
Enron: What Caused the Ethical Collapse?
Andrew Rumsey
Post University
Enron: What Caused the Ethical Collapse?
Enron, a Texas based energy company, has improved the way that electricity and natural gas is purchased ever since its inception in 1985 when its owner, Kenneth Lay, merged his original company called InterNorth with Houston Natural Gas Company. In addition to this, Enron’s growth was attributed to not only the U.S. congress deregulating the sale of natural gas but its selling of electricity at market prices. Even though Enron’s started with natural gas especially shipping natural gas on its pipelines, this company desired larger profits and shifted into electricity trading operations and/or was one of the first energy companies or traders to get into the electricity trading, which started some of its troubles. In light of the fact that electrical traders in Enron involved themselves in schemes to defraud officials running California 's power grid, these same electrical traders at Enron drove up prices during the California power crisis through controversial techniques that contributed ' to severe power shortages (Isaacs, 2012, Oppel & Gerth, 2002, Brigham & Daves, 2013, Enron-The rise and fall of the Energy Giant, 2011). In fact, Enron, which was once a favorite to investors and an American energy company had filed the hugest corporate bankruptcy because of the major events that led to the eventual collapse of this corporation, the ways the top leadership at this company undermined the foundation values of its own Code of Ethics, and the unethical decisions and actions that were promoted by its corporate culture.
Firstly, there were many causes that led to the eventual collapse of Enron especially under Kenneth Lay, Jeffrey Skilling, Andrew S. Fastow, and other top-level officers. For instance, not only the fraudulent or deceitful activities that were orchestrated by Lay, Skilling, and Fastow, but also the company’s criminal and dishonest
Andrew Rumsey
Post University
Enron: What Caused the Ethical Collapse?
Enron, a Texas based energy company, has improved the way that electricity and natural gas is purchased ever since its inception in 1985 when its owner, Kenneth Lay, merged his original company called InterNorth with Houston Natural Gas Company. In addition to this, Enron’s growth was attributed to not only the U.S. congress deregulating the sale of natural gas but its selling of electricity at market prices. Even though Enron’s started with natural gas especially shipping natural gas on its pipelines, this company desired larger profits and shifted into electricity trading operations and/or was one of the first energy companies or traders to get into the electricity trading, which started some of its troubles. In light of the fact that electrical traders in Enron involved themselves in schemes to defraud officials running California 's power grid, these same electrical traders at Enron drove up prices during the California power crisis through controversial techniques that contributed ' to severe power shortages (Isaacs, 2012, Oppel & Gerth, 2002, Brigham & Daves, 2013, Enron-The rise and fall of the Energy Giant, 2011). In fact, Enron, which was once a favorite to investors and an American energy company had filed the hugest corporate bankruptcy because of the major events that led to the eventual collapse of this corporation, the ways the top leadership at this company undermined the foundation values of its own Code of Ethics, and the unethical decisions and actions that were promoted by its corporate culture.
Firstly, there were many causes that led to the eventual collapse of Enron especially under Kenneth Lay, Jeffrey Skilling, Andrew S. Fastow, and other top-level officers. For instance, not only the fraudulent or deceitful activities that were orchestrated by Lay, Skilling, and Fastow, but also the company’s criminal and dishonest
References: Hasnain & Tope & Ranjhani & Raj (2008, February 11). The Effects of Enron Fraud [Video file]. Retrieved June 22, 2015, from https://www.youtube.com/watch?v=Uxd9AeXft64 Isaacs, J Oppel, R. & Gerth J. (2002, May 7). Enron Forced Up California Prices, Documents Show. Retrieved June 23, 2015, from https://www.wsws.org/en/articles/2002/05/enro-m10.html DiLallo, M Wong, P. & Langley B. (2007). Lessons from the Enron Debacle: Corporate Culture Matters! Retrieved June 23, 2015, from http://www.meaning.ca/archives/archive/art_lessons-from-enron_P_Wong.htm Enron-The rise and fall of the Energy Giant Former Enron Chief Financial Officer Andrew S. Fastow Indicted For Fraud, Money Laundering, Conspiracy. (2002, October 31). Retrieved June 23, 2015, from http://www.justice.gov/archive/opa/pr/2002/October/02_crm_627.htm Brigham, E Coenen, T. (2006, June 7). Enron: The Good, the Bad, and the Ugly. Wisconsin Law Journal, 00, 0-0. Retrieved June 23, 2015 from http://wislawjournal.com/2006/06/07/enron-the-good-the-bad-and-the-ugly/ Raghavan, A