1. Provide Brief Info
1: Enron Company was created after merging Houston Natural
Gas Corporation and enters North Corporation in July 1985.
Growth for Enron was rapid in 2000; the company's annual
revenue reached$100 billion US.
Ethical Issues
2: In 1997 and before Andrew became the CFO of Enron he
started to hide his debts and inflate profits.
Jeff Skilling entered a plea of not guilty to 40 charges, including
wire fraud, securities fraud, and conspiracy, insider trading and
making false statements on financial reports.
Kenneth Lay was charged with fraud and making misleading
statements in July. He pleaded not guilty to the 11 charges.
Why these issues happened
3: Allegedly Lay and Skilling used "accounting tricks, fiction,
hocus-pocus, trickery, misleading statements, half-truths,
omissions and outright lies" to commit their crimes.
2. 1
Provide suggestions to avoid similar issues happen in other
company
4: The boards of directors need to pay closer attention to the
behavior of management and the way the company is making
money and pay more attention to how employees and customers
and business partners are treated.
