The enron scandal and analysis business

Its collapse affected thousands of employees and shook Wall Stree t to its core.

The enron scandal and analysis business

As a result of this declaration of deregulation, ENRON executives were permitted to maintain agency over the earnings reports that were released to investors and employees alike. Misrepresentation By misrepresenting earnings reports while continuing to enjoy the revenue provided by the investors not privy to the true financial condition of ENRON, the executives of ENRON embezzled funds funneling in from investments while reporting fraudulent earnings to those investors; this not only proliferated more investments from current stockholders, but also attracted new investors desiring the enjoy the apparent financial gains enjoyed by the ENRON corporation.

Due to the fact the ENRON was a then-widely respected corporation, the general populace were not wary about the validity of these statements.

However, upon retroactive review, many historians and economists suspect that the ENRON executives manufactured this crisis in preparation of the discovery of the fraud they had committed — although the executives of ENRON were enjoying the funds rendered from investments, the corporation itself was approaching bankruptcy.

Embezzlement An ENRON Scandal Summary of the acts of Embezzlement undertaken by ENRON Executives may be defined as the criminal activity involving the unlawful and unethical attainment of monies and funding by employees; typically, funds that are embezzled are intended for company use in lieu of personal use.

The Enron Scandal: An Ethical Analysis | The Business Scholar

While the ENRON executives were pocketing the investment funds from unsuspecting investors, those funds were being stolen from the company, which resulted in the bankruptcy of the company.Analysis of Enron Scandal. EXECUTIVE SUMMARY The report analyzes how the Enron Scandal took place and how the big energy giant was collapsed suddenly and eventually filed for bankruptcy/5(1).

Keywords: Enron scandal, Accounting fraud, Moral responsibility, Analysis 1. Review of Enron’s Rise and Fall Throughout the late s, Enron was almost universally considered one of the country's most innovative companies -- a new-economy maverick that forsook musty, old industries with.

Jun 18,  · The Enron Scandal: An Ethical Analysis In October of a corporate scandal was revealed that led to the bankruptcy of Enron, an energy company based in Houston, Texas.

The enron scandal and analysis business

Considered one of America’s most innovative companies in the late . ENRON Scandal Summary: The Deregulation of ENRON While the term regulation within a commercial and corporate setting typically applied to the government’s ability to regulate and authorize commercial activity and behavior with regard to individual businesses, the ENRON executives applied for – and were subsequently granted – government.

Business Strategy Enron Case Study 09/08/12 Enron Case Study: From Company to Conspiracy 1. What is the History of Enron, and what current situation does it find itself in? Enron was created by a combination of companies. In addition to Andrew Fastow, a major player in the Enron scandal was Enron's accounting firm Arthur Andersen LLP and partner David B.

Duncan, who oversaw Enron's accounts.

The Enron Scandal: An Ethical Analysis | The Business Scholar