Collapse of Enron
THE COLLAPSE OF ENRON
August 11
2008
[Type the abstract of the document here. The abstract is typically a short summary of the contents of the document. Type the abstract of the document here. The abstract is typically a short summary of the contents of the document.]
FROM PERSPECTIVE OF CORPORATE GOVERNANCE
TABLE OF CONTENTS
CONTENTS PAGE NO.
Introduction 3
Background of Enron 3
Enron Business Model 4
Summary of transactions & Partnerships 5
Corporate Governance Issues 8
Post-Enron Governance Reforms 12
Conclusion 13
INTRODUCTION
"The secret of success is honesty and fair dealing," Mark Twain, once said. "If you can fake these, you 've got it made."
Apparently, that strategy worked at Enron. For three years, Enron was named one of the 100 Best Companies to Work for in America. In 2000 Enron received six environmental awards. It had progressive policies on climate change, human rights, and anti-corruption. Its CEO gave speeches at ethics conferences and put together a statement of values emphasizing "communication, respect, and integrity." The company’s stock was a favorite among "socially responsible" mutual funds.
After Enron 's fall, one of the hotter items on e-Bay was a 64-page paperback, the Enron corporate code of ethics. "Never been opened," proclaimed one seller, a former employee.
Often referred to as the first major failure of the “New Economy,” the collapse of Enron Corporation stunned investors, accountants, and boardrooms and sent shockwaves across financial markets when the company filed for bankruptcy on December 2, 2001.
In addition to crippling investor confidence and provoking questions about the sustainability of a deregulated energy market, Enron’s collapse has precipitated a complete reevaluation of both the accounting industry and many aspects of corporate governance in America.
BACKGROUND OF ENRON:
Enron was founded in 1985 through the merger
August 11
2008
[Type the abstract of the document here. The abstract is typically a short summary of the contents of the document. Type the abstract of the document here. The abstract is typically a short summary of the contents of the document.]
FROM PERSPECTIVE OF CORPORATE GOVERNANCE
TABLE OF CONTENTS
CONTENTS PAGE NO.
Introduction 3
Background of Enron 3
Enron Business Model 4
Summary of transactions & Partnerships 5
Corporate Governance Issues 8
Post-Enron Governance Reforms 12
Conclusion 13
INTRODUCTION
"The secret of success is honesty and fair dealing," Mark Twain, once said. "If you can fake these, you 've got it made."
Apparently, that strategy worked at Enron. For three years, Enron was named one of the 100 Best Companies to Work for in America. In 2000 Enron received six environmental awards. It had progressive policies on climate change, human rights, and anti-corruption. Its CEO gave speeches at ethics conferences and put together a statement of values emphasizing "communication, respect, and integrity." The company’s stock was a favorite among "socially responsible" mutual funds.
After Enron 's fall, one of the hotter items on e-Bay was a 64-page paperback, the Enron corporate code of ethics. "Never been opened," proclaimed one seller, a former employee.
Often referred to as the first major failure of the “New Economy,” the collapse of Enron Corporation stunned investors, accountants, and boardrooms and sent shockwaves across financial markets when the company filed for bankruptcy on December 2, 2001.
In addition to crippling investor confidence and provoking questions about the sustainability of a deregulated energy market, Enron’s collapse has precipitated a complete reevaluation of both the accounting industry and many aspects of corporate governance in America.
BACKGROUND OF ENRON:
Enron was founded in 1985 through the merger