The Ethics of Enron

The government, again lobbied by Enron and others, deregulated electricity markets over the next several years, creating a similar opportunity for Enron to trade futures in electric power. With this, Enron began to grow at a rapid pace, having their assets grow by $50 billion in the matter of a short fifteen years.

             Being seen as a powerful company was undermining motive that lead to Enron's one main goal that they continuously strove to achieve. Who would not enjoy having a superior image for as long as this company did. Enron, before its collapse, was one of the worlds leading electrical, natural gas, and communication companies (NPR 2012). The company, with profit of $101 billion in 2000, markets electricity and natural gas, delivers physical commodities and financial and risk management services around the world, and has developed an intelligent network platform online business (NPR 2012). However, all so called good things for Enron came to an end.

             Despite Enron's perceptual display of ethical standards in its transactions, social conduct, environmental and financial reports, evidence of unethical behaviors such as engaging in massive corporate fraud, misleading its investors and employees about its financial status bloated out when it collapsed in 2001. By excluding its partnerships with Chewco and Joint Energy Development Investments (JEDI) from its financial statements, Enron was able to hide its $600 million debt from the balance sheet. For about eight years, Enron used complex and unethical accounting schemes to reduce its tax payments, overstate income and profits, inflate stock price and credit rating, hide losses, transfer the company's money to themselves, and fraudulently misrepresent its financial condition in public reports. Enron Senior Management did perform a job well done until it fell apart when Enron's share price started to drop in 2000. .

             Before Enron filed for bankruptcy protection, the Securities & Exchange Commission (SEC) already found out these accounting irregularities where Enron clearly misled its shareholders, analysts and creditors.

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