United States vs. Enron

Topics: Enron, Kenneth Lay, Jeffrey Skilling Pages: 3 (1032 words) Published: November 17, 2012
“United States vs. Enron”
Enron Corporation was one of the largest global energy, services and commodities company. Before it was filed bankruptcy under chapter 11, it sold natural gas and electricity, delivered energy and other commodities such as bandwidth internet connection, and provided risk management and financial services to the clients around the world. Enron was established in 1930 as Northern Natural Gas Company and joined with three other companies to undertake this industry. The four companies eventually began to break apart between 1941 and 1947 as a result of a public stock offering. In 1979, Northern Natural Gas was placed under new management when it was bought by InterNorth Inc. In 1985, Kenneth Lay, CEO of Houston Natural Gas Company devised a transaction for InterNorth to purchase Houston Natural Gas. Lay was named CEO of the new company and changed InterNorth's name to Enron Corporation. This newly developed company originally was involved in distributing gas and electricity throughout the United States, and operation of power plants and pipelines worldwide. In fifteen short years Enron became the nation's seventh largest company, but the company's growth was due to several illegal activities. During 2001, Enron shares fell from eighty-five dollars to thirty cents. The devastating results occurred after it was revealed that many of its profits and revenue were the result of deals with special purpose entities. Businesses and people care about ethics in the society, therefore being socially responsible, ethical, and a good corporate citizen, is important to meet and exceed the expectations of any organization's stakeholders. Today's organizations recognize the importance of developing and sustaining a reputation that is built on doing the right things and doing things right as viewed by their key stakeholders, as has been the case with Enron. The issues surrounding business ethics, corporate social responsibility, and...
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