Enron Corporation was considered as American fast growing commodities, energy, and service Company but the fate of the company was not good and it was bankrupted on 2nd December 2001 (Bratton, & Levitin, 2013). There are many reasons behind the failure of the company; some…
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The duration of the project that was expected by the company was 10 years and the company expected that it will generate huge amount of profit from this project. But the reality is opposite to what Enron forecasted and it had to bear huge loss in terms of finance and social image (Ahmed, 2012). The project was considered as the largest direct foreign investment project in India’s history but it became debacle for Enron because many countries criticized Enron for its poor performance and fake promises (Bettauer, 2009).
Enron’s liquefied natural gas power plant development project stated in 1992 in Maharashtra state of India. It was supposed to fulfill India’s energy need with more than 2000 megawatts of electricity (Ahmed, 2012). But due to various issues like dispute over prices between India’s government and Enron and criticism of Indians on this project turned the venture into an example of what can go wrong when two different cultures collide in a large scale development project (Bajaj, 2010). The project became debacle for Enron because it produced no electricity and in 2001 the company got bankrupted.
Enron Corporation in 1992 proclaimed that it would develop a natural gas power plant worth of $3 billion in Dabhol western state of Maharashtra, India. The project was expected to be the poster child of India’s economic liberalization but unfortunately it became the symbol of project failure and people consider it as a human rights nightmare and an economic failure.
The project was subject of criticism from the beginning. The company worked hand in hand with dishonest Indian bureaucrats and politicians in order to complete the project but Indian public interest group filed charges against Enron and in 1993 Indian Reliance Company bribed Indian petroleum minister to secure the contract (Leuz, & Schrand, 2009). Due to this bribery
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This was followed closely by WorldCom, one of the largest telecom companies in July 2002, (Roy and Walter, 53). Several changes have taken place since. First off, the ensuing public outrage revealed a questionable investor confidence in corporate management, regulatory bodies such as the Securities Exchange Commission/.
Report 13 6.0 Corporate Governance in the US 13 6.1 Enron Corporate Collapse 13 6.2 The Sarbanes-Oxley Act (2002) 14 6.3 The Securities and Exchange Commission (SEC) 14 7.0 Conclusion 15 8.0 References 17 1.0 Introduction Corporate governance is an effective way of safeguarding the stakeholders’ faith in the business.
Enron & Sox Corporate Governance Essay Name Institution Enron & Sox Corporate Governance Essay The Enron Case study basically revolves around the fact of the deliberate and calculated financial and managerial improprieties that were behind the collapse of the firm.
The paper operates mainly based on research questions which can be stated as follows: How did the corporate culture of Enron contribute to its bankruptcy? Did Enron's bankers, auditors, and attorneys contribute to Enron's demise? If so, what was their contribution? What role did the chief financial officer play in creating the problems that led to Enron's financial problems?
The classic example of a big business that went bankrupt because of its fraudulent and unethical business practice is Enron. Enron has interest in providing energy and at some point, became one of the biggest American energy commodities and services from 1985-2001 in American.
This research will focus on some important issues that relate to Ethics and Corporate Social Responsibility Theory. In doing this, the following objectives will be addressed: 1. An assessment of whether Enron's long-time Chief Executive acted immorally or not.
A circumstance where group thinking contributed towards the company’s downfall can be exemplified with the demise of Enron. Members associated with the company contributed in certain ways to the downfall. The group thinking contributed to the inability of the management and board of directors to rethink the proposal of Jeff Skilling.
It is evident from the study that the scandal happened because of the inefficient and unethical practices of the Enron’s top management particularly its accounting department in liaison with the consultant accounting firm, under the ‘mute’ supervision of its CEO. This mistake led to the entire company collapsing and unfortunately affecting the employees and other stakeholders.
6 Pages(1500 words)Research Paper
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