Enron Disaster

Running head: THE ENRON DISASTER Case Assignment channel Ethics The Enron Disaster Introduction Enron was one of umteen companies that were created in the wake of the US governments energy initiatives that began in the lately 1970s. In 1985 Houston intrinsic Gas merged with InterNorth and the two pass cognize as Enron. Within a year Kenneth gravel, the fountain Houston Natural Gas CEO, become the CEO of Enron (Baker & Hayes, 2005). In 1990 Lay leased Jeffery Skilling. Mr. Skilling would later help as the CEO of Enron. However, he would rescind from that face in 2001. Kenneth Lay returned to the CEO position when Skilling resigned. wizard of the first people hired by Skilling was Andrew Fastow. Mr. Fastow generated companies that were intentional to souse any of Enrons financial losses. This allowed Enron to appear to be doing oft better financially than it really was (Madsen & Vance, 2009). By august of 2000 E nrons stock was trading at $90.00 per share. This was an all fourth proportion high for the company. However, by November of 2001 Enrons stock had plunged to $1.00 per share. On gossamer latitude 2nd of that year Enron claimed bankruptcy and laid dour thousands of employees.

non only did the company claim bankruptcy, but Lay, Skilling, and Fastow were facing many an(prenominal) legal charges. Ultimately, Lay would die of a heart enterprise prior to being sentenced and Skilling would be sentenced to give ear more than 20 years in prison. Fastow ended up serving as a witness for the prosecutor i n the case against Enron and definitive a ! reduced sentence of only ten years. Mr. Fastows wife was also charged in the case and had to serve one year in prison. The collapse of Enron forced senators and veritable(a) a U.S. President to get involved in the foundation turn of a task force whose purpose is to identify methods what allow for strengthen the Americans workers retirement security (Sridharan, Dickes & Caines, 2002). Throughout this paper we vanish discuss the role that...If you want to get a in full essay, order it on our website: OrderCustomPaper.com

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