Enron

10,175 views

Published on

Published in: Business, Technology
0 Comments
11 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
10,175
On SlideShare
0
From Embeds
0
Number of Embeds
152
Actions
Shares
0
Downloads
0
Comments
0
Likes
11
Embeds 0
No embeds

No notes for slide

Enron

  1. 1. ENRON: The Business Failure Critical Analysis Presented by-: Prabhat Mani Tripathi
  2. 2. Overview <ul><li>Background of Enron </li></ul><ul><li>Source of Enron’s problems </li></ul><ul><li>Ethical dilemma </li></ul><ul><li>Controversies happened </li></ul><ul><li>Moral theories </li></ul><ul><li>Conclusion – Who’s to blame? </li></ul><ul><li>Sources </li></ul>
  3. 3. Background of Enron <ul><li>Once the 20 th largest company in the world </li></ul><ul><li>Enron dealt mainly with energy and international trade </li></ul><ul><li>America’s largest supplier of energy </li></ul><ul><li>Dealt with many overseas companies involving millions of dollars </li></ul>
  4. 4. The source of Enron’s problems <ul><li>Enron started to collapse in June, 2001 </li></ul><ul><li>Used poor accounting procedures </li></ul><ul><li>Failed to record all assets on balance sheets </li></ul><ul><li>This problem was compounded thousands of times </li></ul>
  5. 5. Graph of Enron’s stock prices in 2001
  6. 6. Ethical dilemma <ul><li>Stockholder reports inform public about financial information and business transactions </li></ul><ul><li>Enron officials did not notify public about accounting practices </li></ul><ul><li>Should Enron have informed the public/stockholders? </li></ul>
  7. 7. First side – Corporate Officials <ul><li>These include Ken Lay, Jeff Skilling, and Andrew Fastow </li></ul><ul><li>Believe Enron was great for economy </li></ul><ul><li>Circulated money, provided jobs, dealt with international companies </li></ul><ul><li>Did not inform public in order to keep Enron in business </li></ul>
  8. 8. Public/Stockholders <ul><li>Believed they should have been informed about accounting practices </li></ul><ul><li>Most lost all of their retirement funds and investments </li></ul><ul><li>One lost over $700,000 in retirement funds invested in Enron </li></ul>
  9. 9. Conclusion <ul><li>Enron should have informed public in stockholder reports </li></ul><ul><li>Many would have saved all their money </li></ul><ul><li>If Enron was more closely regulated, could this have been prevented? </li></ul><ul><li>Enron scandal should be a lesson for future businesses involving ethical dilemmas. </li></ul>

×