Enron

Enron In a matter of fifteen short years, America’s 7th largest company, Enron, employing 21, 000 in more than 40 countries, collapsed and filed Chapter 11 reorganization bankruptcy. Confidence plummeted once the news emerged about the company’s tremendous financial liability. A number of investigations have ensued—four being done by Congress, one by the financial regulator, the Securities and Exchange Commission, and one by the Labor Department. Enron’s inception took place in July 1985 when Houston Natural …

…hide the mounting company debt. In conclusion, one must question the accounting and business practices Enron was involved in. The use of special purpose entities inconsistent with GAAP, the investment of employees money in company stock instead of diversifying, and management selling stock while prices were high are all ethical issues to investigate. References http://www.wire.ap.org/ http://www.bbc.com/ http://www.businessweek.com/ http://www.time.com/ http://www.fei.org/