Unethical Practices that Caused the Downfall of Enron

Topics: Enron, Enron scandal, Kenneth Lay Pages: 4 (1314 words) Published: November 22, 2013
Atish Bhasker TISHMEISTER
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Unethical Practices that Caused the Downfall of Enron
Enron, once the seventh largest company in the United States of America according to the Fortune 500, is one of the best examples today as how greed and desire for success in business can transform one into unethical behaviorism. In its early days Enron did the right things and were completely ethical when it came to business. Later on their successful operations were replaced with the illusion of their operations being successful. In the last phases of Enron, they sustained their operation throughout loans from banks and investors. However when their loan funds dried up, the company imploded. Enron’s collapse was the result of countless unethical practices. Enron began with their CEO Kenneth Lay. The name Enron in North America is now a synonym with green and excessive profit by whichever means possible to do so. Enron started out as a natural gas company put together by Kenneth Lay. The enterprise was put together to profit from the deregulation of the natural gas industry around the North American area.

Enron was one of the largest energy company in the United States, and in the world. They marketed electricity and natural gas. They delivered energy, physical commodities and provided financial and risk management service to countless customers around the world. Enron was formed in July 1985 which was merged with Houston Natural Gas, and InterNorth of Omaha, Nebraska. Initially being just a natural gas pipeline company, Enron began to enter European market in 1995. They also launched a plan to buy and sell access to very high speeds of internet bandwidth.

It began with the trouble in Vahalla. The enterprise acquired a team of financial market speculators. Their original job and function was to evade the risk of the company in their field of operations. Soon the speculators got involved and by...

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Donna Fezler, The Enron Scandal, November 30, 2001
Jerry Isaacs, Enron defrauded California out of billions during energy crisis, 10 May 2002,
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