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MBA 6070X – Ethics & Law Essay
2 February 2015
Enron - Ethics & Law Essay
Introduction: Enron Corporation was an American energy company based in Houston, Texas. Before its bankruptcy in late 2001, Enron employed approximately 22,000 employees and was one of the largest electricity, natural gas, paper, and communication companies, with overall revenues of nearly $101 billion in 2000. The company developed, built and operated power plants and pipelines while dealing with rules of law and various infrastructures worldwide. In just 15 years, Enron grew into one of America’s largest companies and leading magazine “Fortune” named Enron “America’s Most Innovative Company” for six consecutive years.
Enron divided its business into three main areas: (I) Enron Wholesale, (II) Enron Energy Service, and (III) Enron’s Global Asset. Enron wasn’t focusing to specific industry strategies. Rather, it has an overall strategy that calls for creating an environment and culture of creativity and idea generation. “Enron is a laboratory of innovation. Enron’s entrepreneurial approach calls for new insights, new ways of looking at problems and opportunities. Enron has an exceptional ability to leverage its intellectual capital. Individuals are empowered to do what they think is best. Enron’s philosophy is not to stand in the way of our employees. This environment spurs the innovation that enables Enron to revolutionize traditional energy markets and successfully enter new ones outside of the energy industry. “Enron’s primary competitive advantage is to identify opportunities and act quickly on it, that we never surrender. Enron often introduces a product or concept before the competition even senses that a market exists”.
What Happened in Enron (Fraud): Accounting practices-Enron created offshore entities units which may be used for planning and

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