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Enron Corporation

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How did the Enron Corporation violate ethical practices and legal violations? Why there has been such a relatively high number of such violations in the business world, and what it says about the business environment that the United States operates in.

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The Enron Corporation: Legal Violations and Breaching Ethical Practices

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The Enron Corporation is the energy giant that went into Bankruptcy following a huge accounting scandal in the organization. The company came into the news after it was discovered that its accounting statements were misleading and the company's management had been manipulating their books to show inflated profits. The company was making losses but the top executives of the company manipulated accounts to show inflated profits in order to boost the stock price of the company. They engaged in insider trading and sold off their shares at higher prices by artificially inflating the profits of the company. Enron's scandal shook the entire corporate world in USA and other countries, which raised questions regarding corporate governance, accounting practices and financial reporting of publicly traded companies.

One of the major impacts of Enron's fraud was loss of trust among the investors, creditors and shareholders of the organization. The general public started questioning the reliability and accuracy of financial statements of ...

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  • BCom, SGTB Khalsa College, University of Delhi
  • MBA, Rochester Institute of Technology
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