Enron Corporation was an energy, commodity, and service company. Enron employed over 20,000 employees and was one of the world’s leading electricity, natural gas, communications, and pulp and paper companies, with claimed revenues of nearly $101 billion in the year 2000. In just 15 years, Enron grew from nowhere to being America’s seventh largest company having staff in more than 40 countries. The well known global business magazine Fortune name Enron “America’s Most Innovative Company” for six consecutive years.
In October of 2001, it was revealed of their creatively planned accounting fraud, known as the “Enron scandal” led the company to bankruptcy. Enron lied about its profits and stands accused of a range of shady dealings, including concealing debts so they didn’t show up in the company’s accounts. This scandal was one of the five largest audits and accountancy partnerships in the world. It was also the largest bankruptcy reorganization in American history.
How it all started
Enron was formed in 1985 by Kenneth Lay after merging Houston Natural Gas and InterNorth of Omaha in Nebraska. Enron Corporation was one of the largest global energy, services and commodities company. Before it was filed bankruptcy, it sold natural gas and electricity, delivered energy and other commodities such as bandwidth internet connection, and provided risk management and financial services to the clients around the world. Jeffrey Skilling was later hired which he developed a staff of executives that were able to hide billions of dollars in debt from failed deals and projects. Andrew Fastow (Enron’s CFO) and other executives misled Enron’s board of directors and audit committee on their accounting practices with the help of Arthur Anderson’s accounting firm.
Enron was expected to dominate the market but instead the corporation became the largest corporate failure in the global history and an example of well-planned and institutionalized corporate...