Question
case study enron scandal
CASE Unethical Leadership at Enron Enron was an energy and communications com ulation of the energy markets in the United States. Early in 2001, the company employed ars 22.000 people, and at that time Kenneth Lay was the Chairman of the Board and the CEO vou leffrey Skilling. Fortune magazine named Enron "America's Most Innovative Company" for6 consecutive years from 1996 to 2001. The company was on Fortune's list of 100 best companies to work for in America for the year 2000, and it was widely praised for having good benefits and for effective management. However, the public image of benevolence and effective management was false, and the company was not as successful as it appeared. With the help of their accountants and attorneys, top executives created subsidiaries that looked like partnerships and made it possible to sell assets and create false earnings. Offshore entities were used to avoid taxes, inflate assets and profits, and hide losses. Risky new tures were initiated, such as EnronOnline, a web-based service for buying, selling, and trading
Explanation / Answer
2. After Enron, the government came up with the following rules and regulations to prevent such incidences from happening in the future:
