Nobody downloaded yet

The fall of Enron cannot be blamed on just a few bad apples, discuss critically - Essay Example

Comments (0) Cite this document
Summary
Enron was an interstate pipeline company in 1985 following a merger between Houston Natural Gas and Internorth with Kenneth Lay as the CEO and a year later winning the chairman’s post. In 1999, Enron expanded to other areas through Enron online and broadband services…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER96.8% of users find it useful
The fall of Enron cannot be blamed on just a few bad apples, discuss critically
Read TextPreview

Extract of sample "The fall of Enron cannot be blamed on just a few bad apples, discuss critically"

Download file to see previous pages lt was a replacement of Andrew Fastow, Enron’s Chief Financial Officer and the start of investigations on investment partnerships depicting the web of partnerships aimed at hiding Enron’s debt. The effect was a plummeting of Enron stock to less than a dollar, and Enron filed for bankruptcy in Dec 2, 2011. This study aims at analysing the strengths and weaknesses of the assertion that the fall of Enron cannot be blamed on just a few bad apples. The effect is the development of an in-depth understanding of the factors that were in play in the fall of Enron and provided a conclusion as to the reasons behind the fall of Enron.
There are a number of strengths for the statement,“a few bad apples are to blame for Enron’s fall”. The statement takes into consideration the mistakes made by a few people including Arthur Andersen LLC, Enron’s accounting firm alongside Andrew Fastow for allowing Enron to use partnerships to hide debt and present questionable profits in its financial statements2. Andersen LLC overlooked problems at Enron since it was a lucrative client garnering over $100 million in fees; hence are among the bad apples to blame for Enron’s fall. Andersen is also responsible for the shredding of evidence relating to its dealing with Enron affecting the ability of investigations to unearth the cause of the fall showing that they are responsible for Enron’s fall. Andrew Fastow is to blame for orchestrating the minimal disclosure and the use of the mark-to-market accounting to hide debts at Enron and gives a false impression of profitability. He also demonstrated a conflict of interest in terms of the $30 million he gained from the partnerships aimed at helping Enron but allowing for him to gain from the transaction sat the expense of the stakeholders. The Enron executives form the other bad apples to blame for the fall of Enron through cashing in on their stock while using company funds for personal use through phony investments. The evidence for ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“The fall of Enron cannot be blamed on just a few bad apples, discuss Essay”, n.d.)
The fall of Enron cannot be blamed on just a few bad apples, discuss Essay. Retrieved from https://studentshare.org/business/1675075-the-fall-of-enron-cannot-be-blamed-on-just-a-few-bad-apples-discuss-critically
(The Fall of Enron Cannot Be Blamed on Just a Few Bad Apples, Discuss Essay)
The Fall of Enron Cannot Be Blamed on Just a Few Bad Apples, Discuss Essay. https://studentshare.org/business/1675075-the-fall-of-enron-cannot-be-blamed-on-just-a-few-bad-apples-discuss-critically.
“The Fall of Enron Cannot Be Blamed on Just a Few Bad Apples, Discuss Essay”, n.d. https://studentshare.org/business/1675075-the-fall-of-enron-cannot-be-blamed-on-just-a-few-bad-apples-discuss-critically.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF The fall of Enron cannot be blamed on just a few bad apples, discuss critically

The Rise and fall of Enron

...The rise and fall of Enron Facts In the 1990s a business empire was in the making. A business empire with a very bright future was created. Its market shares were in high demand among investors. In some critic’s arguments, the situation was too good to be true. However, the critics could not change the fact that the business empire had captured the market’s attention. Year after year the market value of the company sky rocketed as investors sought to cash from the opportunity. Every step of its growth was calculated. It turned out to be an empire every ambitious employee wanted to work for. With human resource demands, consumer demand and investor interest the empire...
4 Pages(1000 words)Research Paper

The Rise & Fall of a Billion Dollar Company Enron

...? The Rise & Fall of a Billion Dollar Company Enron No: The Rise & Fall of a Billion Dollar Company Enron Company Profile The journey of Enron started way back to 1985 when it acquired the assets of Houston Natural Gas and Omaha based at Inter North. Kenneth Lay, the former chief executive officer of the said company became CEO. Subsequently by dint of hard work, the following year, he was elevated to the coveted position of Chairperson (Fox, 2003). Later on, the company switched its business from pipeline to other lucrative businesses. In the year 1999, the company introduced its broadband services named as Enron Online, which was a...
9 Pages(2250 words)Term Paper

Critically discuss whether birth control is good or bad

...?Critically discuss whether birth control is good or bad Introduction The world’s population has increased to proportions which have caused much concern for the government authorities as well as global citizens. Issues springing from over population have caused significant problems for various governments, with some of these issues relating to poverty, environmental destruction, and depleting food sources. According to the United Nations, the world’s population has now reached 7 billion and is growing at a rate of 1.10% with each year and the average population change stands at 75 million individuals annually (Worldometers, 2012). This population is set to increase in the years to come....
4 Pages(1000 words)Essay

Implication of Bad Managerial Ethics in Enron

...? Implication of Bad Managerial Ethics in Enron Implication of Bad Managerial Ethics in Enron Ethics can be defined as morally accepted values that employees should uphold at the workplace. Ethics play a significant role in shaping the future outlook of any business venture. Therefore, success of any business venture relies largely on upholding of ethical habits that include integrity and transparency. On the other hand, the failure of a business venture can be attributed to upholding unethical values such as deception and complacency. Ethics can be understood well by paying special attention to the Enron scandal. This paper discusses the...
4 Pages(1000 words)Term Paper

Lower Leg Ulcers

9 Pages(2250 words)Essay

Enron

...2003, p. 6). A little-noticed but remarkable side effect of this revolutionary development came in the energy sector. Within about 5 years of the emergence of the Internet and the Web, electricity consumption linked to this new phenomenon had surged to 8 percent of total consumption. Naturally enough, this caught the eye of the prosperous energy trader down in Houston. How could Enron play in this exciting new game (Jorion 2003, p. 6) In order for a firm to have a reasonable chance of success in the realm of the Internet, it needed to be able to control its risks. Well, this was something that Enron was in a very good position to do. In fact, very few companies in the 1990s were as...
8 Pages(2000 words)Essay

The Fall of Enron

...the biggest player in the energy sector through successful trade earnings from futures contracts (NPR, 2006). To his advantage, Spectrum 7, an oil-well concern welcomed a partnership with Enron a year after its creation. Spectrum 7 was headed by George W. Bush, son of the then-Vice President George H. W. Bush. With falling gas prices in the mid 1980’s, Enron and other gas firms vigorously lobbied for deregulation. The deregulation action came into effect when buyers switched to the cheaper alternative – fuel oil. No doubt fluctuating gas prices allowed Enron to start marketing gas futures; securing gas prices at later date promised to their stakeholders. Similarly, the...
6 Pages(1500 words)Essay

Enron

...Gas Company founded in 1932, InterNorth was formed as its holding company in 1979. Later in 1985, InterNorth took over Houston Natural Gas Company in 1985, in pursuit of expansionary production opportunities. For a while, the company was renamed HNG/InterNorth after the takeover, later named to Enron in just a few months. After the takeover, HNG/InterNorth fell into depth of $ 4.2 billion (Gavridis) following the acquisition of the company. In view of the critical situation, Kenneth Lay, then CEO of HNG, used Employee Stock Ownership Program to pay off the debt. After the settlement, the company, initially planned to manage two headquarters in Omaha and Houston, moved...
10 Pages(2500 words)Research Paper

Critically discuss the proposition; ''organisational culture cannot be managed''

...Critically discuss the proposition; organisational culture cannot be managed Managing Organisational Culture The concept of managing organisational culture has been drawing much attention to the long-neglected and subjective side of organisational life (Alvesson, 2002). There has been more emphasis on cultural and symbolic aspects, which are relevant in a pragmatic context. It has resulted in most of the critical organisational aspects not receiving much attention, creating a difficulty in smoothening organisational management. There are confusion and varied discussions about the concept of organisational culture in organisational literature and practice....
10 Pages(2500 words)Essay

Enron

...the company in its later stages. Special light on the transformational and trait leadership in Enron will be analyzed while discussing the key players of Enron (McLean & Elkind, 2003). An analysis of the culture of Enron will help in identifying the two contrasting ethical systems of mixed deontology and egoism. The reason for the fall of the company will be discussed in detail, focusing on ethical and accounting fraud. The final section of the research paper will examine the various policy responses by the government after the scandal. The research paper will also examine the various correlations between Enron and...
20 Pages(5000 words)Research Paper
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic The fall of Enron cannot be blamed on just a few bad apples, discuss critically for FREE!

Contact Us