Enron and Restoring Corporate Integrity Analytical Essay by RightRiters

The paper shows the relationship between corporations and the general public has always been somewhat of a double-edged sword. On the one hand, individuals purchase goods and services from corporations and invest in stock in hopes of reaping financial benefits as well as stimulating economic growth. By contrast, corporations employ individuals and must also please Wall Street analysts as well as meet their own financial expectations. The paper discusses how over the past two decades, numerous high-profile corporate scandals have occurred that have weakened the public's trust in corporations, beginning with the savings and loan scandals of the 1980 involving Charles Keating, and the insider trading and leveraged buyout scandals of the late 1980s involving Drexel Burnham and Michael Milken. During the 1990s, it seemed as if corporations could do no wrong, minting tens of thousands of millionaires (employees, executives, investors) while reporting unprecedented profits. The paper explains however, that as the accounting scandals and ensuring bankruptcies of Enron, Global Crossing, WorldCom and numerous other high-profile corporations indicate, there was much deception and smoke and mirrors behind their seemingly invincible exterior.

Part II of the paper discusses the reasons for Enron's downfall in light of the auditing business. In Part III, Enron's law firms' role in the collapse is outlined. Part IV reviews Enron's lack of 401(k) diversification. Part V outlines proposals for restoring corporate integrity. Lastly, this paper concludes with proposals for restoring integrity within the American business arena.