Greed and Unethical Behavior of Enron
Greed and Unethical Behavior of EnronThe Greed and Unethical Behavior at Enron
March 13, 2012
The Smartest Guys in The Room (2005) Enron was one of the largest trading firms in the U.S. It was founded in 1985 by Ken Lay when he began his crusade to help liberate businessmen from government regulation. It remained one of the largest firms up until 2001, when all of their illegal activity was exposed and all of the finger pointing began, and was even voted to be the most innovative companies in 2000 by fortune 5 hundred magazine (First 20 min.). The scandal had broad reach, and included many politicians including WWW.Time.COM (2002) George Bush Sr. and Jr. as well as then Vice President Dick Cheney and Attorney General John Ashcroft. It also included Enron’s auditor Joseph F. Berardino who was the CEO of Arthur Andersen, and their banker Marc Shapiro Vice President of JPMorgan Chase. All of these people played a role in the scandal, although they didn’t even work for the company, but the key players were the Enron officials. Including but not limited to the following Enron employees, Kenneth Lay was the CEO, and Jeff Skilling was the Chief Executive while Richard Causey was the CAO. Andrew Fastow was the CFO and Wendy Gramm and John Mendelsohn were both members of the Board of Directors (Behind the Enron Scandal).
The bad decisions were made from the very beginning. The Smartest Guys in The Room (2005) The Bush family had a very strong relationship with Ken Lay, and George Bush Sr. helped get $30 million in subsidies for Enron Int., while he was in office. He also promoted Ken Lay as the ambassador of deregulation. Lay always portrayed himself as being very orally sound, stating that he had a large amount of integrity. All the while he was pushing deregulation for the money to be made and nothing else. In 1987, Enron’s baby company, Enron Oil was involved in the Vahalla scandal. They started making bets on oil between two oil traders. One of the...