Essay on Enron - 975 Words

The fall of the colossal entity called Enron has forever changed the level of trust that the American public holds for large corporations. The wake of devastation caused by this and other recent corporate financial scandals has brought about a web of new reforms and regulations such as the Sarbanes-Oxley Act, which was signed into law on July 30th, 2002. We are forced to ask ourselves if it will happen again. This essay will examine the collapse of Enron and detail the main causes behind this embarrassing stain of American history. Whenever someone hears the word Enron today, they usually think of the transgressions committed by the top-level executives who successfully managed to destroy the companys reputation and achievements.†¦show more content†¦This would serve to guarantee the SPEs value [2]. The SPE, in exchange, would use the stock to hedge the value of various investments on Enrons balance reports [2]. Enron stock prices had been consistently on the rise and, counting on this trend to continue, the false assumption was made that they would never have to pay on any of the guarantees [2]. These complicated financial maneuvers generated huge sums of money for Enron. Several people were getting rich from these dealings, especially Mr. Fastow. They were given enormous amounts of compensation to continue promoting the use of the SPEs [2]. One example of these transactions took place in June of 2000. The SPE known as LJM2 purchased fiber-optic cable for $30 million in cash and $70 million in IOUs [3]. LJM2 sold part of the fiber to other companies for $40 million and paid Enron a 20 million dollar agency fee for helping to market the product [3]. LJM2 then sold the remaining fiber for $113 million to a company owned by Enron and used some of the money from that sale to pay off their remaining debt [3]. When it was all over, LJM2 was 2.4 million dollars richer, and Enrons credit risk had been reduced by $9 million [3]. Unfortunately for Enron and its investors, the money party was short lived. When Enrons stock values began to fall, the value of the SPEs fell with it, triggering the previous guarantees. This caused theShow MoreRelatedEnron Of Enron And Enron1209 Words   |  5 PagesEnron Cooperation, is a company that was based in Houston Texas and was an energy company. This company filed bankruptcy in 2001 leaving a lot of its employees that had no knowledge about what was going on jobless and the company investors losing a lot of money. This was one of biggest companies in the united states, it had a lot of assets all over the country and was operating on a lot of profit that nobody knew how and why. The movie, â€Å"Enron, The smartest guy in the room† shows that the companyRead MoreEnron : Enron And Enron1143 Words   |  5 PagesEnron was formed in July 1985 by the merger of InterNorth and Houston Natural Gas (Enron Fast Facts, 2015). Kenneth Lay became chief executive of Enron and he hired Jeffrey Skilling to look after the company’s energy trading operation (The rise and fall of Enron, 2006). Skilling’s plan was to be basically a gas bank where buys gas from suppliers for future years at previously agreed prices and sells the gas to its customers in advance to purchase at specified prices for future years. By doing thatRead MoreEnron Of Enron And Enron1387 Words   |  6 PagesEnron was formed in 1985 from the merger of two gas companies from Texas and Nebraska. Enron became the first company with all-American network of gas pipelines. In 1997 Enron bought power generating company Portland General Electric Corp. worth $ 2 billion. Before 1997 ended, the management turned the company into Enron Capital Trade Resources which became the largest American companies that trade in natural gas and electricity. Revenue increased dramatically from $ 2 billion to $ 7 billionRead MoreEnron And Enron Of Enron1781 Words   |  8 Pagesâ€Å"During the Enron debacle, it was workers who took the pounding, not bankers. Not only di d Enron employees lose their jobs, many lost their retirement savings. That s because they were at the bottom of the investing food chain.† In July of 1985, Houston Natural Gas merged with InterNorth, to create Enron, and Kenneth Lay became CEO the following year. In 1989, Enron began trading natural gas commodities. In 1997, Andrew Fastow devised the first steps to hide debts and inflate profits and one yearRead MoreEnron : Enron And Enron Scandal Essay1269 Words   |  6 PagesEnron was one of the largest energy, commodities, and services company in the world. It was founded in 1985 and based in Huston, Texas. Before its bankruptcy on December 2, 2001, there are more than 20,000 staff and with claimed revenues nearly $101 billion during 2000. Enron was the rank 16 of Fortune 500 in 2000. In 2001 it revealed that Enron’s financial report was planned accounting fraud, known since as the Enron scandal. In the Enron scandal, Enron used fraudulent accounting practices to coverRead MoreThe, Enron, And Enron1844 Words   |  8 PagesThe complete destruction of companies including Arthur Andersen, HealthSouth, and Enron, revealed a significant weakness in the United States audit system. The significant weakness is the failure to deliver true independence between the auditors and their clients. In each of these companies there was deviation from professional rules of conduct resulting from the pressures of clients placed upon their auditors (Goldman, and Barlev 857-859). Over the years, client and auditor relationships were intertwinedRead MoreEnron : The Collapse Of Enron1644 Words   |  7 PagesEnron was once one of the world s leading energy companies by reshaping the way natural gas and electricity were bought and sold. They filed the largest corporate bankruptcy in American history in 2001. Enron Corporation was an energy company running out of Texas that was started when two companies, Houston Natural Gas and InterNorth, merged together in 19 85. By 1992, Enron became the largest seller of natural gas in North America and began to offer other services like wholesaler trading and riskRead MoreThe Enron Scandal Of Enron Essay1458 Words   |  6 Pagesevent that took place in our economy was the Enron Scandal, which happened in late 2000 and lasted into the following year. Those who were involved in this incident directly such as CEO’s Ken Lay and Jeff Skilling thought what they were doing was not wrong and that they were able to get away with making millions falsely (Seabury, 2008). However, this was a serious crisis situation and many people were affected through the process as well as their money. Enron was valuing themselves at a higher priceRead MoreEnron : The Demise Of Enron1740 Words   |  7 PagesEnron was a corporation that reached heights unknown, only to watch it fall apart from the inside out based on a foundation of falsehoods and cheating. Enron established a business culture that flourished on comp etition and was perceived in society as an arrogant corporation, mainly because of its corporate leadership. The fairytale of Enron actually ended as a nightmare with it destroyed by one of America’s largest bankruptcies in history. The demise of Enron impacted the livelihood and futuresRead MoreEnron And The Enron Scandal1588 Words   |  7 PagesEnron was a corporation located in Houston, Texas and in just fifteen years the US energy trading and utilities company grew to become one of America’s largest and more successful cooperation’s. Enron suffered a major fall. After being one of the most successful corporations Enron became the biggest company to file bankruptcy in history. In this research paper it will discuss about the history of Enron, the fraud committed and who is to blame. The historical development of white collar crime in the

Terrorism Is A Budding Problem - 1395 Words

Terrorism is a budding problem in the present world. It has been a big issue since the events of 9/11. There are numerous terrorist organizations in the world today. Three of these organization are responsible for most of the terrorist attack today. These organizations are Al Qaeda, Taliban and ISIS. These organization orchestrate most of the attacks that happen today. According to New York Times, the numerous attacks that happened in Paris, that killed 130 people, Egypt, that killed 224 people and the Orlando night club shooting was orchestrated by ISIS. In this new information age and with the technology of internet, the terrorist have found a very easy way to launch attacks. The internet is a relatively new technology. It has come to become a very important part of our lives, especially in the United States of America. With the help of internet, people can talk from one side of the globe to the other instantly. It not just talking, people can send information in the form of codes of pictures or virtually anything to anywhere in the world in an instant.. This has become the most significant tool in globalization. The easy access and easy communication that the internet has brought upon us can also be defined as globalization. The internet has been the biggest factor in modern terrorism. Because of such easy access to communication facilities the terrorist organizations are flourishing. The internet is a huge pool of information that can be accessed by anyone TerroristShow MoreRelatedWhy The Youth Join Terrorist Groups Like Isis1307 Words   |  6 PagesProphet’ by the means of the so called ‘justifiable violence’ or ‘Jihad’. 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Top designers on this tony stretch of shops include Yves Saint Laurent, Prada, Fendi and Fred Leighton. †¢ The Grove, Los Angeles, CA: Infuse your shoppingRead MoreWhy Should Study Abroad?910 Words   |  4 Pageswas born in a small town in Ohio, moved to Los Angeles for his higher studies and graduated in California state university, long beach, where he learnt about his interests into movies. Another general benefit of studying abroad is problems of global warming, terrorism, population and various other alarming issues can be discussed upon a larger scale to form various reforms against them. Students from their own countries have facts and figures of their homelands and they could be rectified from theRead MoreThe United States And The Iranian Revolution1705 Words   |  7 PagesInvestigative Agency Policies developed a plan. From this plan came a special task force, which was given the task of identifying problems with the system and a way of proceeding. The task force identified problems in the tracking and the monitoring of students by schools, problems in the certification of schools by the Immigration and Naturalization Service (INS), and problems with INS receiving and maintaining up-to-date records from schools . What was the response to this? SEVIS In December of 2002Read MorePost Liberal Era Essay1559 Words   |  7 Pagesessentials† and that â€Å"that the non-needy should bear a fair portion of the burden of economic recovery.† The fact that unessential items were held over necessary items for the health of children is cold-hearted. Another huge, relevant problem that began budding under the presidency of Ronald Reagan was mass incarceration. Incarceration rates rose quickly during his term but skyrocketed when President Bill Clinton passed the â€Å"Crime Bill† according to the sources. 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Hence like all leftover problems of the ages past, it is complicated by nature. However as all actors seek to win the favor of great powers once more, the regional power, China is facing a complicated problem, the problem of having to supporting an ungrateful ally and supporting an ally that won’t win, all involved in conflicts that can’t be solved in the foreseeable futureRead MoreGp Essay Mainpoints24643 Words   |  99 Pages(ESSAY) Content Page 1. Media a. New vs. Traditional b. New: narcissistic? c. Government Censorship d. Profit-driven Media e. Advertising f. Private life of public figures g. Celebrity as a role model h. Blame media for our problems i. Power + Responsibility of Media j. Media ethics k. New Media and Democracy 2. Science/Tech a. Science and Ethics b. Government and scientist role in science c. Rely too much on technology? d. Nuclear technology e. Genetic

Starbucks Hr Management Free Essays

Strategic Human Resources Management The emergence of strategic human resources management is rooted in manpower planning but it is the work of affirming the importance of managing people effectively as well as pursuing towards more flexible and innovative in order to be able to deliver services in constantly changing environment. Most of the literature review suggested that the advantage of valuable knowledge, unique set of skills and decision making capabilities can results in firm’s competitive advantage and value creation as well (Rochling et all, 2005). Therefore, an appropriate Human Resources practices can develops organizational capabilities such as empowerment, selective hiring, extensive training, performance evaluation, team based work and performance based pay work. We will write a custom essay sample on Starbucks Hr Management or any similar topic only for you Order Now Based on these six practices, the initial impact is on what employees have and feel. Selective hiring and extensive training are all aimed at building certain skills that enabling employees to effectively perform their jobs. In the addition on these practices along with rewards, performance evaluation, empowerment and team based work will create employee’s perceptions on the company’s fairness and desirability and then, will influence their commitment, motivation and motivation where it will directly affect on the firm’s performance. However, although these six practices being analyzed individually, they are not necessarily being practiced individually. This means that some of these can be combined together in order to get better results such as the combination of empowerment, team based work and rewards. This can be proved from the Whole Food Market case. The unique human resource practices in Whole Food Market was well known and thought to be the main drivers of its growth and profitability in the industry of natural and organic food retailers. The work culture in Whole Food Market was centered on the firm’s grassroots, which are the frontline level of management which helped to eliminate bureaucracy. The firm empowered the existing team member to choose their own new recruits where they feel comfortable with in their team. Besides that, the firm also uses team based incentive (combination of team based work and reward) to improve cost saving as well as productivity. Each department within a store that runs by a team will be given a monthly payroll budget where the unspent payroll money at the end of the month will be divided among the team members. This method has successfully reduces unwanted costs and increases the firm’s performance financially. Extensive training has the potential side where training tends to develop more skillful expertise that eventually will boost up the employees confidents and motivation while performing their job. Whenever the firm did not provide sufficient training and development to the less skillful employees, this may lead to demoralization among the employees and then, reduces the productivity and firm’s performance. For example, Delta Airline, where the firm focuses more on cost reduction and did not put much effort on employee commitment. The firm has deducted training costs which considers as crucial expenses in the airline industry and causes lack of employee engagement in the firm. Consequently, Delta has dropped to the bottom of the industry in performance as compared to its competitors such as Southwest Airline. Every human resource practices costs money to develop and time to implement and these costs however, will go directly to the organization bottom line. For example, being selective in hiring may result in better employees but it will cost more in term of interviewing and testing. Providing more extensive training will increase their skills and potentially their attitudes but it will cause substantial amount of money spent to the firm. Thus, it is vital to implement a high performance human practices that increases productivity and at the same time do not let their costs surpass the benefits or that will bring no real gain for the firm. How to cite Starbucks Hr Management, Essay examples