SlideShare a Scribd company logo
Presented to:
Sir Osama Bashir Soomro
Presented by:
Sidra Afroz Khan
Uzair Abdul Wahid
Junaid Ahmed
Aneela Khan
 Enron Corporation - American energy company based in Houston, Texas.
 Formed in 1985 by Kenneth Lay by merging natural gas pipeline
companies, namely, Houston Natural Gas and Inter North.
 Employed approximately 20,000 staff.
 One of the world’s major electricity, natural gas, communications,
pulp & paper companies.
 Revenues of nearly $111 billion in 2000.
 Fortune Magazine named Enron “America’s Most Innovative
Company” for six consecutive years.
 Also led to the dissolution of Arthur Andersen, which was one of the five
largest audit and accountancy partnerships in the world.
 Enron was cited as the biggest audit failure.
Founder: Kenneth lay
Former President CEO: Jeffrey Skilling
Former CFO: Andrew Fastow
The bankruptcy of Enron shook the entire system. Some highlights
brought about when this scandal had been exposed were:
1.$30 million of self-dealings by the Chief Financial Officer.
2.$700 million of net earnings disappeared.
3.$1.2 billion shareholder’s equity disappeared.
4.Over $4 billion in hidden liabilities.
 Many of Enron’s recorded assets and profits were inflated or
even wholly fraudulent and non-existent.
 Debts & equities were put into entities formed “offshores”
that were not included in the company’s financial statements
• In 1985, Kenneth Lay merged the natural gas pipeline companies
of Houston Natural Gas and InterNorth to form Enron
• As Enron became the largest seller of natural gas in North America by
1992, its trading of gas contracts earned $122 million (before interest
and taxes), the second largest contributor to the company's net
income. The November 1999 creation of the Enron Online trading
website allowed the company to better manage its contracts trading
business.
• In an attempt to achieve further growth, Enron pursued a
diversification strategy. The company owned and operated a variety
of assets including gas pipelines, electricity plants, pulp and paper
plants, water plants, and broadband services across the globe.
• Enron's stock increased from the start of the 1990s until year-end 1998
by 311%, the stock increased by 56% in 1999 and a further 87% in 2000
Enron's complex financial statements were confusing to
shareholders and analysts. In addition, its complex
business model and unethical practices required that the
company use accounting limitations to misrepresent
earnings and modify the balance sheet to indicate
favorable performance.
The combination of these issues later resulted in the
bankruptcy of the company, Kenneth Lay served as the
chairman, and pressured Enron executives to find new
ways to hide its debt. Fastow and other executives
"created off-balance-sheet vehicles, complex financing
structures
 The company showed entire sales value as revenue in it financial
statements.
 As a result, Enron’s revenues increased from $13.3 billion to
$100.8 billion.
 This 65% annual increase was unprecedented in the energy
industry wherein growth of 2-3% is considered respectable.
 2001, a investment agency boss publicly doubts the profitability
model of Enron, the stock price decrease from $80 to 42$ in Aug.
 16, Oct. Enron announces the total loss for 3th quarter was $618
million.
 22, Oct. SEC begin to investigate Enron formally.
 8, Nov. Enron was forced to admit do false account, profit total false
nearly $600 million since 1997.
 30, Nov. stock price falls to $0.26 per share.
 2, Dec. formally apply for bankruptcy protection.
Enron's headquarters in Downtown Houston was
leased from a consortium of banks who had bought
the property for $285 million in the 1990s. It was sold
for $55.5 million, just before Enron moved out in 2004.
[160]
Enron's shareholders lost $74 billion in the four years
before the company's bankruptcy ($40 to $45 billion
was attributed to fraud). As Enron had nearly $67
billion that it owed creditors, employees and
shareholders received limited, if any, assistance aside
from severance from Enron.To pay its creditors,
Enron held auctions to sell assets including art,
photographs, logo signs, and its pipelines.
In May 2004, more than 20,000 of Enron's former
employees won a suit of $85 million for compensation
of $2 billion that was lost from their pensions.
 In conclusion, Enron was a remarkable and innovative
company in the world, Its success cannot be neglected.
 But there is a interest question for Enron’s bankruptcy:
Is there a company can get success without ethics?
 To see from the facts, the answer is “no.”
 Whether Enron or Anderson, they finally pay for their
fault on ethics.
 We see ethic problem would bring a fatal strike to a
company, no matter how it was successful.
Enron
Enron

More Related Content

What's hot

ENRON PPT
ENRON PPTENRON PPT
Enron scandal
Enron scandalEnron scandal
Enron scandal
Nitin16498
 
Enron case study
Enron case studyEnron case study
Enron case study
Ratu Farah Nadia
 
The Collapse of Enron
The Collapse of EnronThe Collapse of Enron
The Collapse of Enron
Aakash Khandelwal
 
What Happened with Enron
What Happened with EnronWhat Happened with Enron
What Happened with Enron
Prashant Mirgule
 
Enron case study
Enron case studyEnron case study
Enron case study
summunir
 
Enron
Enron Enron
Enron Enron
Enron EnronEnron Enron
Enron Enron
Alim ehsan Dipon
 
Enron Manac
Enron ManacEnron Manac
Enron Manac
Madhusudan Partani
 
Enron
EnronEnron
Enron
srmsibs
 
Enron Scandal
Enron ScandalEnron Scandal
Enron Scandal
Barath P
 
Enron scam- Role of derivatives
Enron scam- Role of derivativesEnron scam- Role of derivatives
Enron scam- Role of derivatives
Manju Natarajan
 
Enron Scandal_2012.ppt
Enron Scandal_2012.pptEnron Scandal_2012.ppt
Enron Scandal_2012.ppt
KuldeepSingh926190
 
Collapse of Enron
Collapse of EnronCollapse of Enron
Collapse of Enron
Fahmida Rahim
 
The Enron case: from success to scandal to bankruptcy
The Enron case: from success to scandal to bankruptcy�The Enron case: from success to scandal to bankruptcy�
The Enron case: from success to scandal to bankruptcy
Suzzanne Uhland
 
Enron Scam
Enron Scam Enron Scam
Enron Scam
Sohil Ganeriwala
 
ENRON SCANDAL
ENRON SCANDALENRON SCANDAL
ENRON SCANDAL
Himanshu Goyal
 
Enron Scandal
Enron ScandalEnron Scandal
Enron Scandal
Niket Ratta
 
Enron Scandal -Business Ethics
Enron Scandal -Business EthicsEnron Scandal -Business Ethics
Enron Scandal -Business Ethics
Gaurav Sharma
 
Enron Case Study 971103 [Compatibility Mode]
Enron Case Study 971103 [Compatibility Mode]Enron Case Study 971103 [Compatibility Mode]
Enron Case Study 971103 [Compatibility Mode]
MBA_Community
 

What's hot (20)

ENRON PPT
ENRON PPTENRON PPT
ENRON PPT
 
Enron scandal
Enron scandalEnron scandal
Enron scandal
 
Enron case study
Enron case studyEnron case study
Enron case study
 
The Collapse of Enron
The Collapse of EnronThe Collapse of Enron
The Collapse of Enron
 
What Happened with Enron
What Happened with EnronWhat Happened with Enron
What Happened with Enron
 
Enron case study
Enron case studyEnron case study
Enron case study
 
Enron
Enron Enron
Enron
 
Enron Enron
Enron EnronEnron Enron
Enron Enron
 
Enron Manac
Enron ManacEnron Manac
Enron Manac
 
Enron
EnronEnron
Enron
 
Enron Scandal
Enron ScandalEnron Scandal
Enron Scandal
 
Enron scam- Role of derivatives
Enron scam- Role of derivativesEnron scam- Role of derivatives
Enron scam- Role of derivatives
 
Enron Scandal_2012.ppt
Enron Scandal_2012.pptEnron Scandal_2012.ppt
Enron Scandal_2012.ppt
 
Collapse of Enron
Collapse of EnronCollapse of Enron
Collapse of Enron
 
The Enron case: from success to scandal to bankruptcy
The Enron case: from success to scandal to bankruptcy�The Enron case: from success to scandal to bankruptcy�
The Enron case: from success to scandal to bankruptcy
 
Enron Scam
Enron Scam Enron Scam
Enron Scam
 
ENRON SCANDAL
ENRON SCANDALENRON SCANDAL
ENRON SCANDAL
 
Enron Scandal
Enron ScandalEnron Scandal
Enron Scandal
 
Enron Scandal -Business Ethics
Enron Scandal -Business EthicsEnron Scandal -Business Ethics
Enron Scandal -Business Ethics
 
Enron Case Study 971103 [Compatibility Mode]
Enron Case Study 971103 [Compatibility Mode]Enron Case Study 971103 [Compatibility Mode]
Enron Case Study 971103 [Compatibility Mode]
 

Similar to Enron

Enron Final Oct13
Enron Final Oct13Enron Final Oct13
Enron Final Oct13
Mina Choi
 
Enron Final Oct13
Enron Final  Oct13Enron Final  Oct13
Enron Final Oct13
Mina Choi
 
Enron Final Oct13
Enron Final  Oct13Enron Final  Oct13
Enron Final Oct13
Mina Choi
 
Enron: A Financial Mess
Enron: A Financial MessEnron: A Financial Mess
Enron: A Financial Mess
Zenil Sanghvi
 
Enron slide - Fraud
Enron slide   - FraudEnron slide   - Fraud
Enron slide - Fraud
Siti Madihah Ahmad Sabri
 
Accounting scandals-Vanya Brown
Accounting scandals-Vanya BrownAccounting scandals-Vanya Brown
Accounting scandals-Vanya Brown
Vanya Brown
 
Enron scam
Enron scamEnron scam
EnRon Case 9IntroductionOnce upon a time, there was a gleami.docx
EnRon Case 9IntroductionOnce upon a time, there was a gleami.docxEnRon Case 9IntroductionOnce upon a time, there was a gleami.docx
EnRon Case 9IntroductionOnce upon a time, there was a gleami.docx
khanpaulita
 
Corporate governance report
Corporate governance reportCorporate governance report
Corporate governance report
sreedharm
 
Enron Research Paper
Enron Research PaperEnron Research Paper
Enron Research Paper
Papers Writing Service Peru
 
Enron ppt
Enron pptEnron ppt
Enron ppt
aliza saifi
 
Enron (2)
Enron (2)Enron (2)
Enron (2)
Akul10
 
Enron
EnronEnron
Enron scandal
Enron scandalEnron scandal
Enron scandal
mohit gupta
 
ENRON.pptx
ENRON.pptxENRON.pptx
ENRON.pptx
ENRON.pptxENRON.pptx
Enron Scandal from Auditor's Perspective (F-310)
  Enron Scandal from Auditor's Perspective (F-310)   Enron Scandal from Auditor's Perspective (F-310)
Enron Scandal from Auditor's Perspective (F-310)
Pantho Sarker
 
The Enron Scandal.pptx
The Enron Scandal.pptxThe Enron Scandal.pptx
The Enron Scandal.pptx
Kirankumar .R. Bannigol
 
Dissertation ( ENRON'S FAILURE)
Dissertation ( ENRON'S FAILURE)Dissertation ( ENRON'S FAILURE)
Dissertation ( ENRON'S FAILURE)
CHANDRA SEKHAR MOHANTY
 
Enron Accounting Scandal
Enron Accounting ScandalEnron Accounting Scandal
Enron Accounting Scandal
Rikki Wright
 

Similar to Enron (20)

Enron Final Oct13
Enron Final Oct13Enron Final Oct13
Enron Final Oct13
 
Enron Final Oct13
Enron Final  Oct13Enron Final  Oct13
Enron Final Oct13
 
Enron Final Oct13
Enron Final  Oct13Enron Final  Oct13
Enron Final Oct13
 
Enron: A Financial Mess
Enron: A Financial MessEnron: A Financial Mess
Enron: A Financial Mess
 
Enron slide - Fraud
Enron slide   - FraudEnron slide   - Fraud
Enron slide - Fraud
 
Accounting scandals-Vanya Brown
Accounting scandals-Vanya BrownAccounting scandals-Vanya Brown
Accounting scandals-Vanya Brown
 
Enron scam
Enron scamEnron scam
Enron scam
 
EnRon Case 9IntroductionOnce upon a time, there was a gleami.docx
EnRon Case 9IntroductionOnce upon a time, there was a gleami.docxEnRon Case 9IntroductionOnce upon a time, there was a gleami.docx
EnRon Case 9IntroductionOnce upon a time, there was a gleami.docx
 
Corporate governance report
Corporate governance reportCorporate governance report
Corporate governance report
 
Enron Research Paper
Enron Research PaperEnron Research Paper
Enron Research Paper
 
Enron ppt
Enron pptEnron ppt
Enron ppt
 
Enron (2)
Enron (2)Enron (2)
Enron (2)
 
Enron
EnronEnron
Enron
 
Enron scandal
Enron scandalEnron scandal
Enron scandal
 
ENRON.pptx
ENRON.pptxENRON.pptx
ENRON.pptx
 
ENRON.pptx
ENRON.pptxENRON.pptx
ENRON.pptx
 
Enron Scandal from Auditor's Perspective (F-310)
  Enron Scandal from Auditor's Perspective (F-310)   Enron Scandal from Auditor's Perspective (F-310)
Enron Scandal from Auditor's Perspective (F-310)
 
The Enron Scandal.pptx
The Enron Scandal.pptxThe Enron Scandal.pptx
The Enron Scandal.pptx
 
Dissertation ( ENRON'S FAILURE)
Dissertation ( ENRON'S FAILURE)Dissertation ( ENRON'S FAILURE)
Dissertation ( ENRON'S FAILURE)
 
Enron Accounting Scandal
Enron Accounting ScandalEnron Accounting Scandal
Enron Accounting Scandal
 

Recently uploaded

Why Psychological Safety Matters for Software Teams - ACE 2024 - Ben Linders.pdf
Why Psychological Safety Matters for Software Teams - ACE 2024 - Ben Linders.pdfWhy Psychological Safety Matters for Software Teams - ACE 2024 - Ben Linders.pdf
Why Psychological Safety Matters for Software Teams - ACE 2024 - Ben Linders.pdf
Ben Linders
 
Collapsing Narratives: Exploring Non-Linearity • a micro report by Rosie Wells
Collapsing Narratives: Exploring Non-Linearity • a micro report by Rosie WellsCollapsing Narratives: Exploring Non-Linearity • a micro report by Rosie Wells
Collapsing Narratives: Exploring Non-Linearity • a micro report by Rosie Wells
Rosie Wells
 
Artificial Intelligence, Data and Competition – LIM – June 2024 OECD discussion
Artificial Intelligence, Data and Competition – LIM – June 2024 OECD discussionArtificial Intelligence, Data and Competition – LIM – June 2024 OECD discussion
Artificial Intelligence, Data and Competition – LIM – June 2024 OECD discussion
OECD Directorate for Financial and Enterprise Affairs
 
Artificial Intelligence, Data and Competition – ČORBA – June 2024 OECD discus...
Artificial Intelligence, Data and Competition – ČORBA – June 2024 OECD discus...Artificial Intelligence, Data and Competition – ČORBA – June 2024 OECD discus...
Artificial Intelligence, Data and Competition – ČORBA – June 2024 OECD discus...
OECD Directorate for Financial and Enterprise Affairs
 
Tom tresser burning issue.pptx My Burning issue
Tom tresser burning issue.pptx My Burning issueTom tresser burning issue.pptx My Burning issue
Tom tresser burning issue.pptx My Burning issue
amekonnen
 
ASONAM2023_presection_slide_track-recommendation.pdf
ASONAM2023_presection_slide_track-recommendation.pdfASONAM2023_presection_slide_track-recommendation.pdf
ASONAM2023_presection_slide_track-recommendation.pdf
ToshihiroIto4
 
原版制作贝德福特大学毕业证(bedfordhire毕业证)硕士文凭原版一模一样
原版制作贝德福特大学毕业证(bedfordhire毕业证)硕士文凭原版一模一样原版制作贝德福特大学毕业证(bedfordhire毕业证)硕士文凭原版一模一样
原版制作贝德福特大学毕业证(bedfordhire毕业证)硕士文凭原版一模一样
gpww3sf4
 
Mastering the Concepts Tested in the Databricks Certified Data Engineer Assoc...
Mastering the Concepts Tested in the Databricks Certified Data Engineer Assoc...Mastering the Concepts Tested in the Databricks Certified Data Engineer Assoc...
Mastering the Concepts Tested in the Databricks Certified Data Engineer Assoc...
SkillCertProExams
 
XP 2024 presentation: A New Look to Leadership
XP 2024 presentation: A New Look to LeadershipXP 2024 presentation: A New Look to Leadership
XP 2024 presentation: A New Look to Leadership
samililja
 
Gregory Harris - Cycle 2 - Civics Presentation
Gregory Harris - Cycle 2 - Civics PresentationGregory Harris - Cycle 2 - Civics Presentation
Gregory Harris - Cycle 2 - Civics Presentation
gharris9
 
Suzanne Lagerweij - Influence Without Power - Why Empathy is Your Best Friend...
Suzanne Lagerweij - Influence Without Power - Why Empathy is Your Best Friend...Suzanne Lagerweij - Influence Without Power - Why Empathy is Your Best Friend...
Suzanne Lagerweij - Influence Without Power - Why Empathy is Your Best Friend...
Suzanne Lagerweij
 
2024-05-30_meetup_devops_aix-marseille.pdf
2024-05-30_meetup_devops_aix-marseille.pdf2024-05-30_meetup_devops_aix-marseille.pdf
2024-05-30_meetup_devops_aix-marseille.pdf
Frederic Leger
 
Pro-competitive Industrial Policy – LANE – June 2024 OECD discussion
Pro-competitive Industrial Policy – LANE – June 2024 OECD discussionPro-competitive Industrial Policy – LANE – June 2024 OECD discussion
Pro-competitive Industrial Policy – LANE – June 2024 OECD discussion
OECD Directorate for Financial and Enterprise Affairs
 
Mẫu PPT kế hoạch làm việc sáng tạo cho nửa cuối năm PowerPoint
Mẫu PPT kế hoạch làm việc sáng tạo cho nửa cuối năm PowerPointMẫu PPT kế hoạch làm việc sáng tạo cho nửa cuối năm PowerPoint
Mẫu PPT kế hoạch làm việc sáng tạo cho nửa cuối năm PowerPoint
1990 Media
 
Artificial Intelligence, Data and Competition – OECD – June 2024 OECD discussion
Artificial Intelligence, Data and Competition – OECD – June 2024 OECD discussionArtificial Intelligence, Data and Competition – OECD – June 2024 OECD discussion
Artificial Intelligence, Data and Competition – OECD – June 2024 OECD discussion
OECD Directorate for Financial and Enterprise Affairs
 
Burning Issue Presentation By Kenmaryon.pdf
Burning Issue Presentation By Kenmaryon.pdfBurning Issue Presentation By Kenmaryon.pdf
Burning Issue Presentation By Kenmaryon.pdf
kkirkland2
 
Competition and Regulation in Professions and Occupations – OECD – June 2024 ...
Competition and Regulation in Professions and Occupations – OECD – June 2024 ...Competition and Regulation in Professions and Occupations – OECD – June 2024 ...
Competition and Regulation in Professions and Occupations – OECD – June 2024 ...
OECD Directorate for Financial and Enterprise Affairs
 
Competition and Regulation in Professions and Occupations – ROBSON – June 202...
Competition and Regulation in Professions and Occupations – ROBSON – June 202...Competition and Regulation in Professions and Occupations – ROBSON – June 202...
Competition and Regulation in Professions and Occupations – ROBSON – June 202...
OECD Directorate for Financial and Enterprise Affairs
 
BRIC_2024_2024-06-06-11:30-haunschild_archival_version.pdf
BRIC_2024_2024-06-06-11:30-haunschild_archival_version.pdfBRIC_2024_2024-06-06-11:30-haunschild_archival_version.pdf
BRIC_2024_2024-06-06-11:30-haunschild_archival_version.pdf
Robin Haunschild
 
Artificial Intelligence, Data and Competition – SCHREPEL – June 2024 OECD dis...
Artificial Intelligence, Data and Competition – SCHREPEL – June 2024 OECD dis...Artificial Intelligence, Data and Competition – SCHREPEL – June 2024 OECD dis...
Artificial Intelligence, Data and Competition – SCHREPEL – June 2024 OECD dis...
OECD Directorate for Financial and Enterprise Affairs
 

Recently uploaded (20)

Why Psychological Safety Matters for Software Teams - ACE 2024 - Ben Linders.pdf
Why Psychological Safety Matters for Software Teams - ACE 2024 - Ben Linders.pdfWhy Psychological Safety Matters for Software Teams - ACE 2024 - Ben Linders.pdf
Why Psychological Safety Matters for Software Teams - ACE 2024 - Ben Linders.pdf
 
Collapsing Narratives: Exploring Non-Linearity • a micro report by Rosie Wells
Collapsing Narratives: Exploring Non-Linearity • a micro report by Rosie WellsCollapsing Narratives: Exploring Non-Linearity • a micro report by Rosie Wells
Collapsing Narratives: Exploring Non-Linearity • a micro report by Rosie Wells
 
Artificial Intelligence, Data and Competition – LIM – June 2024 OECD discussion
Artificial Intelligence, Data and Competition – LIM – June 2024 OECD discussionArtificial Intelligence, Data and Competition – LIM – June 2024 OECD discussion
Artificial Intelligence, Data and Competition – LIM – June 2024 OECD discussion
 
Artificial Intelligence, Data and Competition – ČORBA – June 2024 OECD discus...
Artificial Intelligence, Data and Competition – ČORBA – June 2024 OECD discus...Artificial Intelligence, Data and Competition – ČORBA – June 2024 OECD discus...
Artificial Intelligence, Data and Competition – ČORBA – June 2024 OECD discus...
 
Tom tresser burning issue.pptx My Burning issue
Tom tresser burning issue.pptx My Burning issueTom tresser burning issue.pptx My Burning issue
Tom tresser burning issue.pptx My Burning issue
 
ASONAM2023_presection_slide_track-recommendation.pdf
ASONAM2023_presection_slide_track-recommendation.pdfASONAM2023_presection_slide_track-recommendation.pdf
ASONAM2023_presection_slide_track-recommendation.pdf
 
原版制作贝德福特大学毕业证(bedfordhire毕业证)硕士文凭原版一模一样
原版制作贝德福特大学毕业证(bedfordhire毕业证)硕士文凭原版一模一样原版制作贝德福特大学毕业证(bedfordhire毕业证)硕士文凭原版一模一样
原版制作贝德福特大学毕业证(bedfordhire毕业证)硕士文凭原版一模一样
 
Mastering the Concepts Tested in the Databricks Certified Data Engineer Assoc...
Mastering the Concepts Tested in the Databricks Certified Data Engineer Assoc...Mastering the Concepts Tested in the Databricks Certified Data Engineer Assoc...
Mastering the Concepts Tested in the Databricks Certified Data Engineer Assoc...
 
XP 2024 presentation: A New Look to Leadership
XP 2024 presentation: A New Look to LeadershipXP 2024 presentation: A New Look to Leadership
XP 2024 presentation: A New Look to Leadership
 
Gregory Harris - Cycle 2 - Civics Presentation
Gregory Harris - Cycle 2 - Civics PresentationGregory Harris - Cycle 2 - Civics Presentation
Gregory Harris - Cycle 2 - Civics Presentation
 
Suzanne Lagerweij - Influence Without Power - Why Empathy is Your Best Friend...
Suzanne Lagerweij - Influence Without Power - Why Empathy is Your Best Friend...Suzanne Lagerweij - Influence Without Power - Why Empathy is Your Best Friend...
Suzanne Lagerweij - Influence Without Power - Why Empathy is Your Best Friend...
 
2024-05-30_meetup_devops_aix-marseille.pdf
2024-05-30_meetup_devops_aix-marseille.pdf2024-05-30_meetup_devops_aix-marseille.pdf
2024-05-30_meetup_devops_aix-marseille.pdf
 
Pro-competitive Industrial Policy – LANE – June 2024 OECD discussion
Pro-competitive Industrial Policy – LANE – June 2024 OECD discussionPro-competitive Industrial Policy – LANE – June 2024 OECD discussion
Pro-competitive Industrial Policy – LANE – June 2024 OECD discussion
 
Mẫu PPT kế hoạch làm việc sáng tạo cho nửa cuối năm PowerPoint
Mẫu PPT kế hoạch làm việc sáng tạo cho nửa cuối năm PowerPointMẫu PPT kế hoạch làm việc sáng tạo cho nửa cuối năm PowerPoint
Mẫu PPT kế hoạch làm việc sáng tạo cho nửa cuối năm PowerPoint
 
Artificial Intelligence, Data and Competition – OECD – June 2024 OECD discussion
Artificial Intelligence, Data and Competition – OECD – June 2024 OECD discussionArtificial Intelligence, Data and Competition – OECD – June 2024 OECD discussion
Artificial Intelligence, Data and Competition – OECD – June 2024 OECD discussion
 
Burning Issue Presentation By Kenmaryon.pdf
Burning Issue Presentation By Kenmaryon.pdfBurning Issue Presentation By Kenmaryon.pdf
Burning Issue Presentation By Kenmaryon.pdf
 
Competition and Regulation in Professions and Occupations – OECD – June 2024 ...
Competition and Regulation in Professions and Occupations – OECD – June 2024 ...Competition and Regulation in Professions and Occupations – OECD – June 2024 ...
Competition and Regulation in Professions and Occupations – OECD – June 2024 ...
 
Competition and Regulation in Professions and Occupations – ROBSON – June 202...
Competition and Regulation in Professions and Occupations – ROBSON – June 202...Competition and Regulation in Professions and Occupations – ROBSON – June 202...
Competition and Regulation in Professions and Occupations – ROBSON – June 202...
 
BRIC_2024_2024-06-06-11:30-haunschild_archival_version.pdf
BRIC_2024_2024-06-06-11:30-haunschild_archival_version.pdfBRIC_2024_2024-06-06-11:30-haunschild_archival_version.pdf
BRIC_2024_2024-06-06-11:30-haunschild_archival_version.pdf
 
Artificial Intelligence, Data and Competition – SCHREPEL – June 2024 OECD dis...
Artificial Intelligence, Data and Competition – SCHREPEL – June 2024 OECD dis...Artificial Intelligence, Data and Competition – SCHREPEL – June 2024 OECD dis...
Artificial Intelligence, Data and Competition – SCHREPEL – June 2024 OECD dis...
 

Enron

  • 1.
  • 2. Presented to: Sir Osama Bashir Soomro Presented by: Sidra Afroz Khan Uzair Abdul Wahid Junaid Ahmed Aneela Khan
  • 3.  Enron Corporation - American energy company based in Houston, Texas.  Formed in 1985 by Kenneth Lay by merging natural gas pipeline companies, namely, Houston Natural Gas and Inter North.  Employed approximately 20,000 staff.  One of the world’s major electricity, natural gas, communications, pulp & paper companies.  Revenues of nearly $111 billion in 2000.  Fortune Magazine named Enron “America’s Most Innovative Company” for six consecutive years.
  • 4.  Also led to the dissolution of Arthur Andersen, which was one of the five largest audit and accountancy partnerships in the world.  Enron was cited as the biggest audit failure.
  • 5. Founder: Kenneth lay Former President CEO: Jeffrey Skilling Former CFO: Andrew Fastow
  • 6.
  • 7.
  • 8. The bankruptcy of Enron shook the entire system. Some highlights brought about when this scandal had been exposed were: 1.$30 million of self-dealings by the Chief Financial Officer. 2.$700 million of net earnings disappeared. 3.$1.2 billion shareholder’s equity disappeared. 4.Over $4 billion in hidden liabilities.  Many of Enron’s recorded assets and profits were inflated or even wholly fraudulent and non-existent.  Debts & equities were put into entities formed “offshores” that were not included in the company’s financial statements
  • 9. • In 1985, Kenneth Lay merged the natural gas pipeline companies of Houston Natural Gas and InterNorth to form Enron • As Enron became the largest seller of natural gas in North America by 1992, its trading of gas contracts earned $122 million (before interest and taxes), the second largest contributor to the company's net income. The November 1999 creation of the Enron Online trading website allowed the company to better manage its contracts trading business. • In an attempt to achieve further growth, Enron pursued a diversification strategy. The company owned and operated a variety of assets including gas pipelines, electricity plants, pulp and paper plants, water plants, and broadband services across the globe. • Enron's stock increased from the start of the 1990s until year-end 1998 by 311%, the stock increased by 56% in 1999 and a further 87% in 2000
  • 10.
  • 11. Enron's complex financial statements were confusing to shareholders and analysts. In addition, its complex business model and unethical practices required that the company use accounting limitations to misrepresent earnings and modify the balance sheet to indicate favorable performance. The combination of these issues later resulted in the bankruptcy of the company, Kenneth Lay served as the chairman, and pressured Enron executives to find new ways to hide its debt. Fastow and other executives "created off-balance-sheet vehicles, complex financing structures
  • 12.  The company showed entire sales value as revenue in it financial statements.  As a result, Enron’s revenues increased from $13.3 billion to $100.8 billion.  This 65% annual increase was unprecedented in the energy industry wherein growth of 2-3% is considered respectable.
  • 13.  2001, a investment agency boss publicly doubts the profitability model of Enron, the stock price decrease from $80 to 42$ in Aug.  16, Oct. Enron announces the total loss for 3th quarter was $618 million.  22, Oct. SEC begin to investigate Enron formally.  8, Nov. Enron was forced to admit do false account, profit total false nearly $600 million since 1997.  30, Nov. stock price falls to $0.26 per share.  2, Dec. formally apply for bankruptcy protection.
  • 14.
  • 15.
  • 16. Enron's headquarters in Downtown Houston was leased from a consortium of banks who had bought the property for $285 million in the 1990s. It was sold for $55.5 million, just before Enron moved out in 2004. [160] Enron's shareholders lost $74 billion in the four years before the company's bankruptcy ($40 to $45 billion was attributed to fraud). As Enron had nearly $67 billion that it owed creditors, employees and shareholders received limited, if any, assistance aside from severance from Enron.To pay its creditors, Enron held auctions to sell assets including art, photographs, logo signs, and its pipelines. In May 2004, more than 20,000 of Enron's former employees won a suit of $85 million for compensation of $2 billion that was lost from their pensions.
  • 17.  In conclusion, Enron was a remarkable and innovative company in the world, Its success cannot be neglected.  But there is a interest question for Enron’s bankruptcy: Is there a company can get success without ethics?  To see from the facts, the answer is “no.”  Whether Enron or Anderson, they finally pay for their fault on ethics.  We see ethic problem would bring a fatal strike to a company, no matter how it was successful.