The Pros And Cons Of The Enron Scandal

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The Enron scandal in the early 2000’s was a major scandal that was hard to miss (Ferrell, Hirt, & Ferrell, 2009). Enron has once ranked a Fortune 500 company with a network of $111 billion dollars (Ferrell, et. al., 2009). Enron dealt mainly with energy, but they also had interest in communications and paper (Ferrell, et. al., 2009). Enron was confident in their earnings and financial reporting, but after a year of gaining interest, Enron caved in and filed bankrupt (Ferrell, et. al, 2009). At the age of 64, the founder of Enron Kenneth Lay, died of a massive heart attack July 5, 2006, in a Colorado ski resort (Enron, 2006). Lay went to trial in May of that same year and was found guilty of fraud and conspiracy charges (Enron, 2006). Lay was set to spend the rest of his life behind bars (Enron, 2006). Another top executive Clifford Baxter shot himself in the head in 2002 after the company was exposed for corruption. (Enron, 2006). In 2001, Enron Energy Company files bankruptcy (Enron, 2006). For six years counting, Enron was named America’s most innovative company by Fortune magazine (Enron, 2006). Enron …show more content…

First, I would have my accounting department report to me on a weekly basis. For instance, we have a board meeting each Friday to see what our stocks are doing. Secondly, I would set up an email account for each investor so I can report to them in after the weekly meeting. For example, Lets say I have ten investors, each investor would receive a personal message from me to let them know how the stock is rising or failing. It is always a good idea if stockholders have a personal contact with the CEO. Thirdly, I would hold a meeting with my employees. Employees sometimes have the stock in companies. For example, I live in Jackson, TN and our Food Giant displays a 100% employee-owned sign on their

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