An Ethical Analysis of Corporate Conduct at Enron Corporation .
In the fall of 2001, for no apparent reason, Enron's top executives began to resign and one executive even committed suicide. On October 12, 2001, Enron disclosed a $638 million dollar loss for the fiscal year. Later that same month, Enron announced it must pay a $690 million in debt, with another $6 billion by next year. Everyone at the time wondered how a company in such high financial standing suddenly could be broke.
Company Background.
Enron is one of the world's leading energy, commodities and services companies. Enron was formed in July 1985 as a result of the merger of Houston Natural Gas and InterNorth of Omaha, Nebraska. Enron markets electricity and natural gas, delivers energy and other physical commodities, and provides financial and risk management services to customers around the world.
Enron divides its business into three core areas, wholesale services, energy services, and global services. Enron's worldwide wholesale businesses, includes the marketing and delivery of physical commodities and financial and risk management services. Enron's retail business provides integrated energy and facility management outsourcing solutions to commercial and industrial customers. Enron's asset-based business includes pipelines, Portland General Electric, international power, pipeline and distribution operations, engineering businesses and EOTT Energy Corp.
Enron has 19,000 employees and assets worth $47.3 billion. Their headquarters are in Houston. Their stock symbol in ENRNQ and their revenues in 2000 were $101 billion. (www.enron.com/corp/presroom/factsheets/company.html).
Issues Raised by the Press.
Security fraud charges would allege that Enron Executives hid the company's bleak financial condition. Before their collapse in December, the executives hid billions of dollars in debt while they promoted Enron's success. The Securities and Exchange Commission may target banks and law firms for aiding and abetting Enron before it filed bankruptcy.