Ethics And Integrity Of Enron

769 WordsApr 23, 20164 Pages
Most companies pride themselves on their business model and ethics to help make them successful. Ethics and Integrity are two things all companies should practice and promote. When Enron was first developed that is what they set out to do, but things quickly took a turn for the worst. The name Enron is now synonymous with fraud, in one of the biggest Wall Street scandals in history. In 1985 Enron was conceived by two gas companies merging together in Houston, TX. The company began to boom in the late 90’s as they were part of the era. Enron launched their broadband services as well as Enron Online. Forbes named them “America’s Most Innovative Company” for six years straight. By 2000, Enron shares reached an all-time high of $90, propelling them to the 6th largest company (NPR, 2016). By 2001, the company started to show some cracks in their façade. Enron reported a large loss of $618 million as a quarterly loss (CBC, 2006). With such a large and sudden loss, an investigation was launched by the U.S. Securities and Exchange commission. This was a shock to the public as just a year before the stock was trading at $90/share and now, it was under one dollar a share. By December of 2001, Enron filed for bankruptcy. When the company began to show cracks, their secrets were beginning to unravel. The company was not reporting any of its losses from the past several years. The company borrowed from someone else to pay another person. This kept on for some time until they

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