A Corporation With No Morals

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Enron executives knew what was going to happen. “Sherron Watkins, Enron’s vice president, learned Enron was losing money on two equity investments: network equipment supplier Avici lost 98% of its value, and another, New Power and energy retailer that had Ken Lay on the board, dropped more than 80%.

At the close of the financial year, the company issues its annual report, which includes a statement of income and a balance sheet that shows how much the company owes and is owed. Watkins sent a brief letter to Lay warning him about the company, he then cashed out $16. Enron is a good example for all the companies to make sure that they keep neat and clean accounting records. Instead of telling the truth and report what was going to happen, they took the situation to their advantage and didn’t care about anyone else. Most importantly the Enron scandal shows the absolute requirement for boards of directors, executives and everyone else in the business world to accept the moral responsibility for honesty (America 4). ing through investor’s heads who invested their money in this company.

Business Week included this intelligent point on what should be done: “The Federal Reserve should monitor the markets to make sure there’s enough liquidity to keep them open and steady. The bad news is that the investor revolt could turn into a stock market rout and the growing strains on credit could produce a serious banking crisis” (116). Enron ran into financial trouble while transforming itself into a company that traded energy, water, weather derivatives and anything else it could turn into commodity” (Time Jan 2002 19). Some other remedies to the situation is that; first, the accounting profession should be regulated by organizations that are not appointed by the accounting firms themselves, second, the conflict of inter!

est inherent when accounting firms serve as both auditors and consultants needs to be eliminated, third, what are known as “generally accepted principles” should be brought in line with the requirement for “fair” representation of financial results, and finally, even if the law does not require it, equity demands that managers who profited unfairly be severely penalized, and that funds from such penalties be used to compensated employees whose retirement savings were eradicated (America 4).

Enron staff and other investors invested retirement money into this company and now it is all gone. 1 million in stock, and then he assures Enron employees that the company is fine and urges them to buy stock.

In conclusion Enron is perfect for the saying “you can’t read a book by its cover.

Common topics in this essay:
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Approximate Word count = 1075
Approximate Pages = 4 (250 words per page double spaced)

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