Enron Case
CASE 1.1
Enron Corporation
“Think Straight, Talk Straight. “ This was the motto of Arthur Edward Andersen. He was the founder of the Arthur & Company, which was established to provide accounting, auditing and related services. Throughout his professional, Arthur E. Andersen career, relied on a simple, four-word motto to serve as a guiding principle in making important personal and professional decisions: “Think straight, Talk straight.” Andersen would prefer fewer clients, than having more as long as his integrity is intact. If anybody did anything otherwise, he would fire them or quit. And if clients wanted to do something he didn’t agree with, he would either try to change them and quit. Arthur Andersen died in 1947 leaving his firm in the management of Leonard Spacek and other partners.
ENRON: The world’s greatest company turns to be the largest Corporate Bankruptcy in U.S. In the early years of Enron’s operation, they aimed to be the largest natural gas supplier in the United States. But as the year passed by, Enron achieved more than what they expect. They transform from conventional natural gas supplier into an energy trading company. This was headed by Kenneth Lay, the Chairman of the Board, with the help of Jeffrey Skilling, the Chief Executive Officer of Enron. In the year 2000, their energy wholesale services ranked as the company’s largest revenue producer and their EnronOnline rapidly developed, making Enron as the largest E-commerce industry in the world. In line with their success, other services offered by Enron had also been patronized by their clients. In fact, in the first quarter of the year 2001, Enron’s chairman of the board that their first quarter results more great and was very optimistic about their new businesses and was confident that their record of growth is sustainable for many years to come. Unfortunately, things weren’t as good as they were. In a matter of fact months during 2001, Enron quickly unraveled. Enron’s dire
Enron Corporation
“Think Straight, Talk Straight. “ This was the motto of Arthur Edward Andersen. He was the founder of the Arthur & Company, which was established to provide accounting, auditing and related services. Throughout his professional, Arthur E. Andersen career, relied on a simple, four-word motto to serve as a guiding principle in making important personal and professional decisions: “Think straight, Talk straight.” Andersen would prefer fewer clients, than having more as long as his integrity is intact. If anybody did anything otherwise, he would fire them or quit. And if clients wanted to do something he didn’t agree with, he would either try to change them and quit. Arthur Andersen died in 1947 leaving his firm in the management of Leonard Spacek and other partners.
ENRON: The world’s greatest company turns to be the largest Corporate Bankruptcy in U.S. In the early years of Enron’s operation, they aimed to be the largest natural gas supplier in the United States. But as the year passed by, Enron achieved more than what they expect. They transform from conventional natural gas supplier into an energy trading company. This was headed by Kenneth Lay, the Chairman of the Board, with the help of Jeffrey Skilling, the Chief Executive Officer of Enron. In the year 2000, their energy wholesale services ranked as the company’s largest revenue producer and their EnronOnline rapidly developed, making Enron as the largest E-commerce industry in the world. In line with their success, other services offered by Enron had also been patronized by their clients. In fact, in the first quarter of the year 2001, Enron’s chairman of the board that their first quarter results more great and was very optimistic about their new businesses and was confident that their record of growth is sustainable for many years to come. Unfortunately, things weren’t as good as they were. In a matter of fact months during 2001, Enron quickly unraveled. Enron’s dire