Examining a Business Failure: Enron Analytical Essay

A look at the failure of Enron.
# 150570 | 929 words | 5 sources | APA | 2011 | US
Published on Mar 14, 2012 in Business (Law) , Accounting (Fraud)


$19.95 Buy and instantly download this paper now

Description:

This paper examines how specific organizational behavior theories shed light on the failure of the Enron Corporation. First, the paper gives an overview of the scandal at Enron, noting that it was one of the largest securities fraud scandals in history. Then it discusses the responsibility of Enron's leadership in the scandal. Next, the paper looks at how management also contributed to Enron's failure, noting the lack of checks and balances in the accounting division. Finally, the paper addresses changes in corporate structure since Enron's failure, citing the Sarbanes - Oxley Act. The paper concludes by stating that Enron's failure was a result of a lack of oversight, checks and balances, regulatory structure, and an imbalance of power and unethical corporate behavior.


Outline:

Introduction
The Rise and Fall of Enron
Leadership Influence on Enron's Failure
Management Failure
Enron's Impact on Corporate Structures
Conclusion

From the Paper:

"The business failure of Enron was the result of one of the largest securities fraud scandals in history. Enron was established in 1986 as a result of a merger between Houston Natural Gas and InterNorth, which originally intended to become the largest gas pipeline in the country (Healy & Palepu, 2002). In the late 1980s and early 1990s the federal government began deregulation of natural gas and electrical industries. Under the leadership of its president, Kenneth Lay, Enron set out on a corporate plan with strategic goals designed to benefit from the newly deregulated energy markets (Gudinkunst, 2002). Enron quickly dominated in trading energy commodities and commodity derivative financial contracts under the executive direction of Jeffrey Skilling (Healy & Palepu, 2002). According to Gudinkunst (2002) Skilling hired Andrew Fastow in 1990 who rapidly moved up the corporate ladder to become chief financial officer in 1998."

Sample of Sources Used:

  • Donald, E., & Ghoddoucy, S. (2006). Corporate governance abd Sarbanes-Oxley post-post-Enron. Retrieved July 10, 2009, from UC Davis School of Law Web site: http://www.blj.ucdavis.edu/article.asp?id=590
  • Gudinkunst, A. (2002). Enron-A study of failures, who, how, and why? Retrieved July 8, 2009, from Faculty Network Web site: http://web.bryant.edu/~facdev/Web%20Sites/newsletter/fall02/agudikunst.htm
  • Healy, P. M., & Palepu, K. G. (2003). The fall of Enron. Journal of Economic Perspectives, 17(2), 3-26. Retrieved July 9th, 2009 from the University of Phoenix Library
  • Sridharan, U. V., Dickes, L., & Caines, W. R. (2002). The social impact of business failure: Enron. American Journal of Business, 17(2), Retrieved july 9th, 2009 from http://www.bsu.edu.mcobwin/majb/index.php?p=199
  • Tipgos, M. A., & Keefe, T. J. (2004). A comprehensive structure of corporate governance in post-Enron corporate America. The CPA Journal. Retrieved July 10, 2009 from http://www.nysscpa.org/cpajournal/2004/essentials/p46.htm.

Cite this Analytical Essay:

APA Format

Examining a Business Failure: Enron (2012, March 14) Retrieved December 14, 2019, from https://www.academon.com/analytical-essay/examining-a-business-failure-enron-150570/

MLA Format

"Examining a Business Failure: Enron" 14 March 2012. Web. 14 December. 2019. <https://www.academon.com/analytical-essay/examining-a-business-failure-enron-150570/>

Comments