Enron Disaster

Running head: THE ENRON DISASTER Case Assignment subscriber line 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 native 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 chartered Jeffery Skilling. Mr. Skilling would later help as the CEO of Enron. However, he would discontinue from that face in 2001. Kenneth Lay returned to the CEO position when Skilling resigned. iodine of the first people hired by Skilling was Andrew Fastow. Mr. Fastow generated companies that were intentional to pull any of Enrons financial losses. This allowed Enron to appear to be doing much(prenominal) better financially than it really was (Madsen & Vance, 2009). By august of 2000 Enrons stock was trading at $90.00 per share. This was an all fourth ratio high for the company. However, by November of 2001 Enrons stock had plunged to $1.00 per share. On supernal latitude 2nd of that year Enron claimed bankruptcy and laid murder thousands of employees. non only did the company claim bankruptcy, but Lay, Skilling, and Fastow were facing many a(prenominal) legal charges. Ultimately, Lay would die of a heart strive prior to being sentenced and Skilling would be sentenced to reply more than 20 years in prison. Fastow ended up serving as a witness for the prosecutor in the case against Enron and arrogant 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 snip of a task force whose purpose is to identify methods what vector sum strengthen t he Americans workers retirement security (Sr! idharan, Dickes & Caines, 2002). Throughout this paper we moderate discuss the role that...If you want to get a fully essay, order it on our website: OrderCustomPaper.com

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