Enron: The Terrible Scandal
Table of Contents:
Introduction Pg. 3
Enron's Founding Pg. 3
Briefing of Scandal and Its Effects Pg. 3-4
How Enron Fooled Billions Pg. 4-5
Brief on the Positive Outcomes Pg. 5
People Affected and Conclusion Pg. 6
References Pg. 7
Today's ever changing world of business leaves no room for unethical business practices. One of the most notorious and talked about examples of this includes the scandal of Enron. Enron used unethical business practices that caused their multi-billion dollar corporation to tumble, leaving thousands of workers without jobs or even their life-saved pensions. The tumbling also left investors deserving billions of dollars that may never be seen.
Enron was an energy giant that employed around 21,000 people. According to Wikipedia (2006, ¶1), "Enron was one of the world's leading electricity, natural gas, pulp and paper, and communication companies, with claimed revenues of $101 billion in 2000." Enron was founded by CEO Kenneth Lay, who in 1985, merged Houston Natural Gas Co. with Nebraska based Inter-North (Wikipedia, 2006, ¶4). Enron originally involved the conduction and distribution of electricity and gas throughout the United States. They were also involved with the development, construction, and operation of power plants, pipelines, and other infrastructure worldwide (Wikipedia, 2006, ¶5).
The collapse of the energy giant, Enron, is one of the largest bankruptcies and one of the most shocking failures in United States corporate history. It embraced new technologies, established new methods of trading in energy, and seemed to be a shining example of successful corporate America; but, the company's success was based on artificial, inflated profits, dubious accounting practices, and some say fraud. The firm's success turned out to have involved an elaborate scam....
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