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Eron

In: Business and Management

Submitted By tiantian220
Words 323
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Enron Corporation
Overview: The Enron scandal, revealed in October 2001, eventually led to the bankruptcy of the Enron Corporation, an American energy company based in Houston, Texas, and the de facto dissolution of Arthur Andersen, which was one of the five largest audit and accountancy partnerships in the world. In addition to being the largest bankruptcy reorganization in American history at that time, Enron was attributed as the biggest audit failure.
Issue: Enron, once the countries seventh-largest company according to the Fortune 500, is a good example of how greed and the desire for success can transform into unethical behavior. Good ethics in business would be to compete fairly and honestly, to communicate truthfully and to not cause harm to others. These are things that Enron did not seem to display, which led to Enron’s operations file for bankruptcy in 2001.
Enron’s scandal has become one of the most talked about forms of unethical business behaviors. The company’s collapse resulted from the disclosure that it had reported false profits, used accounting methods that failed to follow generally accepted procedures. Both internal and external controls failed to detect the financial losses disguised as profits for a number of years. Enron’s managers and executives retired or sold their company stock before its price went down. Enron employees lost their jobs and most of their retirement savings invested in Enron stock.
Enron’s dishonesty and misleading business ethics unfolded when a Fortune article made people wonder whether Enron’s stock was overpriced. Enron’s executives were later charged with fraud, money laundering and conspiracy. Other companies, such as Arthur Anderson, Citigroup, and Merrill Lynch, also played roles in Enron’s scandal.
To make a long story short, even though a business main goal is to make money, it pays to practice good…...

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