Unethical Behavior at Enron Essay Example

the public began to realize what had happened, Enron’s shares dropped from $90. 00 US to less than 50?. After Enron’s huge financial plunge, information was revealed that much of the profits and revenue were the result of deals with special purpose entities.

Which resulted in the majority of Enron’s debt then was not reported in the financial statements. Including the scandal of Enron caused dissolution of Arthur Andersen, which was one of the world’s top 5 accounting firms.On June 15, 2002, Arthur Andersen was convicted of obstruction of justice for shedding documents related to its audit of Enron. Andersen has not returned as a viable business even on a limited scale.

Over a hundred of civil suits pending against the firm related to its audits of Enron and other companies. Andersen used to have 28,000 employees in the U. S and 85, 000 worldwide and is down to 200 which are primarily based in Chicago. The employee’s attention is focused towards the lawsuits against Andersen.As for the former employees of Enron they are struggling to get back to the lives they used to have before the fallout of Enron. When Enron filed for bankruptcy over 21,000 employees lost their jobs.

In which meant losing their savings, children’s college funds and pensions. Many have lawsuits against Enron’s executives and directors. The lawsuits accuse 29 of the executives and directors of insider trading and misleading the public. Not all past employees of Enron have been left out in the cold world of business. Many have gone on to making their own businesses and banking companies.

They are doing this to make up for the money they lost

in Enron stocks. What Enron’s executives and directors did was really shady and many deserve to be spending time in jail for a long time. They cost thousands of innocent individuals their savings and children’s college funds. That might seriously affect those people’s lives. There definitely was very unethical behavior going on in this company and should have been noticed way before it did. I just couldn’t believe this kind of behavior happened in an American company.

Out of all the places in the world you’d think USA was the most organized and professional of all. But I guess even in the country of opportunity you can still get scammed. Steps I think the USA could take to eliminate this from happening again they could have a monthly meeting with the accounting firms of businesses. So they know that they are doing legal business with companies and to know where the money is going. Also to know where is it coming from and it’s 100% legal.

To have something like this happen again would be disastrous to the stock market.Overall Enron was a company that was in trouble from the start by Lay telling the employees he wouldn’t move the company but then moves it to Houston, Texas a few months later. Lying to employees from the start is not the greatest thing to begin a business with. I was very surprised at how many attempts they tried to hide their debt.

You’d think after several failed attempts they’d give up and confess. If they had confessed sooner of their debt they wouldn’t be in as much trouble and debt as they are now. But I

guess they learned their lesson the hard way. Well we all hope they did.