Accounting

Who is Murder?

Enron’s story is a tragedy. A company which ranked among the top of the world collapsed within about a year. “These big companies will topple over from their own weight”, said then-CEO Skilling. However, this sentence had been redefined again. Is it a scathing satire on himself?

In general, Enron stewed in his own juice. To be more specific, its rulers ruined this big company. No matter how big the company is, the leader should always have a level head. In Enron, on the contrary, there are some people only consider about money took the real leadership: CEO, CFO, and even its founder.

"Our business is not a black box. It's very simple to model. People who raise questions are people who have not gone through it in detail. We have explicit answers, but people want to throw rocks at us", said by Jeff Skiiling.

The fact is just the opposite, Skilling and other major controller of Enron used their tools to cheat their shareholders and the public. By doing those, they violated many ethical conducts.

According to the article, in Enron's energy services division, executives were compensated based on a market valuation formula that relied on internal estimates. As a result, says one former executive, there was pressure to, in effect, inflate the value of the contracts--even though it had no impact on the actual cash that was generated. Those executives “edit” those data in order to satisfy their needs. This violated the Integrity from the ethic conduct - Avoid actual or apparent conflicts of interest. However, this is not violated by accident, this is done by design. They are using a particular way to move the money from company to their own check account. Besides, the false document does not provide the information that is accurate and clear to users which also violates Competence content of ethic conduct.

Referring to “Trading Secrets”, as a trading company, Enron yet acts in a total different way from other normal trading company. For Enron,...