Enron-greed in big companies can follow the paper trail

Enron-greed in big companies can follow the paper trail

Introduction

The word "Enron" became synonymous with bankruptcy and financial scam. The spectacular collapse of the giant energy industry was not only the end of the business, but also completely changed the face of the U.S. economy - and thus the world. In this paper, the author recalls how it came to the largest bankruptcy in the history of the economy. Similarly, by recalling the history, the author also focused on the circumstances that lead to the greatest bankruptcy because at one time Enron was the giant, therefore, it is very much essential to look for the financial and economic activities of Enron that leads to the disaster. To provide the readers a better understanding of the topic, the author divided the paper into different portions. The first portion is the introduction, which basically demonstrated the purpose and scope of the paper that what actually the author tried to present for the readers. As the author mentioned above that the paper is all about the Enron Greed, which escorted it towards the catastrophe.

In the second portion of the paper, the author presented the back ground of the bankruptcy in relation with the economic principles or in simple words what economic policies of the company was the reason behind the bankruptcy. Along with this, in the third portion, the author's motive is to highlight the economic principles that might have the positive influence on the business practices in such a way that if Enron followed those economic principles than might be chances would be there that management could avoid that bankruptcy. In the fourth half of the paper, the author integrated the economic principles that how they could actually benefit the Enron and at last the author concluded the paper with conclusion.

Literature Review

Prosperity

Enron's power grew quite quickly. The company looks for his roots in pre-war even Northern Natural Gas Company - but later flourished in the years shaped the 80th Company originally supposed to read "EnterOn" - was later shortened to Enron - probably due to the fact that the original Greek name which meant so much guts. With a new name Enron quickly climbed to the top. Corporation engaged in power generation, natural gas distribution, and the company was recognized as one of the most innovative in the world, and has received numerous awards - for six years in a row. Fortune (1996-2001) recognized Enron as the most innovative corporation of America. Enron created a difference among other modern things for the first time that it introduced trading platform by the name of global Enron Online, whose focus was mainly on trading in energy, gas, oil, and a few hundred others, but specifically on industrial products. Everything was going fine until 2001 (Sterling, 2002), and then suddenly the great corporation broke.

Scandal

Enron scandal was a huge shock to America and the world. The truth about the financial condition came in front of the public when the ...