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Ethics Research Paper

In: Business and Management

Submitted By marybpdooley
Words 788
Pages 4
Business Research Ethics
Mary Beth Dooley
Res 351
March 26, 2012
Erica Mitchell

Unethical issues are something that every business greatly tries to ignore. This isn’t always the case but a majority of them try to make sure they are handling all business in a very ethical way. The article that I read speaks about a business that didn’t act in such a way when it came to some of the information that it shared with stockholders and analysts. The company in which I speak about is going to be Enron. This company was apart of one of the biggest cases of fraud the country had ever seen.
Enron was a Texas based company. It was formed in 1985, out of the junk-bond merger of two old-line natural gas companies. These companies were known as Houston Natural Gas and Omaha InterNorth. The deal integrated several pipeline systems to create the first nationwide natural gas pipeline system. Ken Lay, who had been the chief executive officer of Houston Natural Gas, was named chairman and chief executive officer of the company we now known as Enron. In 1994, Enron made its first electricity trade, beginning what would turn out to be one of the company’s biggest profit centers for the next few years. It took just over 15 years for Enron to turn itself into one of the world’s largest energy traders. Enron started out as a very successful company but somehow along the line, they got off the right track where they would be helping their clients and shareholders and somehow ended up being very greedy. The behavior that they used that was very unethical would be that they falsified their balance sheets and had their accountant how that they were doing better business than they truly were. They would actually have auditors sign off on their accounting to make it seem like it was okay. This put everyone within the company in jeopardy. When the Enron...

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