Enron Corportaion

Occasionally, scandals are witnessed in cooperate America however none shook the business world in such a magnitude manner like the Enron case popularly known as the “Enron Scandal”. It shook the core belief that many held about the honesty and integrity of corporate conduct. As the sandal unfolded, day by day and revelation after revelation, business people all over the world began to realize that they were witnessing the largest single failure in United State corporate history, and perhaps the ultimate crime of corporate irresponsibility. Sridharan, Dickes & Caines (2003)

Enron Corporation was an American energy, commodities, and Services Company based in Houston, Texas. At the peak of its success, Enron reported revenues upwards of one hundred billion. Enron was created out of the merger of two gas companies in the mid ninety-eighties, and began trading gas commodities in nineteen-eighty-nine and within a few years became the largest supplier in the United States with approximately twenty thousand employees in forty countries. Sridharan., et all (2003) The company later filed for bankruptcy in 2001. Later that year, it was revealed that Enron’s reported financial condition was sustained largely due to an institutionalized and organized accounting fraud, known as the Enron scandal. Enron has since become a well-known example of deliberate corporate fraud and corruption. Sridharan., et all (2003) The scandal also brought into questions the accounting practices and activities of many corporations in the United States and was a factor in the establishment of the Sarbanes–Oxley Act of 2002. The scandal also affected the business world causing the dissolution of Arthur Andersen; once known as one of the top accounting firms in United States.

Investors couldn’t have been more confident in Enron’s direction. Enron was a firm led by seventeen directors with impeccable records, qualifications in Masters in Business Administration and hundreds of years in combined...