The Ethics Of Enron Scandal

1017 Words Feb 17th, 2016 5 Pages
The Dilemma Often an ethical dilemma does not appear abruptly but can rather be the proverbial slow boiling of a frog as they say. Enron was an economic powerhouse in the early to late 90’s. Its financial success was due to a great understanding of the opportunities available in the energy market due to deregulation across the country. The company was founded on sound financial principles which turned to illegal recklessness over time. Key personnel succumbed to unethical pressures which built up slowly over time. Since the public’s trust of professionals in the accounting industry is paramount to society (Mastracchio et. al. 2015) this paper will discuss the ethics not exhibited in the Enron scandal which came to a head in 2001.
History
In 1985 Houston Natural Gas merged with Internorth and renamed itself Enron. In 1990 Jeffrey Skilling was hired to focus on trading in commodities. Skilling later becomes the president of Enron in 1997. Andrew S. Fastow is named as Enron’s financial chief in 1998. According to the New York Times Fastow created partnerships which the company claimed were to buy company assets which were not performing very well. We now have come to realize that these partnerships were instituted in order to conceal the company’s debt and give an image of overinflated profits to the public (2006). In 2000 through 2000 there was shuffling around of key leadership. Skilling resigned citing personal reasons only. Six days later Sherron Watkins approaches CEO…

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