Enron, An American Energy Company

1587 WordsJan 4, 20157 Pages
Enron Leadership One of the best examples recently seen relating to bad leadership is what took place within Enron. Throughout the late ‘90’s, Enron, an American energy company, was considered one of the country 's most innovative companies; while the company continued to build power plants and operate gas lines, it became better known for its unique trading businesses (npr.org, 2014). It can be described as the ideal company for the dotcom-driven stock market boom of the '90s; Enron threw itself head-on onto the internet, and Wall Street loved it, rocketing its stock upward (npr.org, 2014). At the all-time high, Enron was worth $70 billion and its shares traded around $90 each (npr.org, 2014). All this ended when the company stated it had misspoken on its income and its equity value was a couple of billion dollars less than its balance sheet indicated (npr.org, 2014). Additionally, npr.org (2014) states Enron had made many partnerships with companies they created in order to hide debts and losses on its trading business, resulting in one of the largest fraud cases in corporate history. At the end of 2001, Enron officially declared bankruptcy and thousands of people lost their jobs, including investors, many of which were employees, losing totals in the billions of dollars (npr.org, 2014). What came next, according to npr.org (2014), was even more troubling, tales of document shredding, top executives looking for help from administration officials, and officials
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