Scribd
Upload
91 views8 pages

Enron Corp

Enron Corporation was an American energy company that collapsed in 2001 due to institutionalized accounting fraud, bringing to light issues with corporate governance and accounting practices. The scandal led to new regulations around auditing and financial reporting through the Sarbanes-Oxley Act of 2002. Enron traded various commodities and engaged in risky investments that ultimately led to its bankruptcy.

Uploaded by

Shanthana Loshini
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
91 views8 pages

Enron Corp

Enron Corporation was an American energy company that collapsed in 2001 due to institutionalized accounting fraud, bringing to light issues with corporate governance and accounting practices. The scandal led to new regulations around auditing and financial reporting through the Sarbanes-Oxley Act of 2002. Enron traded various commodities and engaged in risky investments that ultimately led to its bankruptcy.

Uploaded by

Shanthana Loshini
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 8

Enron Corporation

Corporate Governance

Shaminy Suresh (1202163001)


Rajarajeswari Raveendran (1202164003)
Introduction
• Enron Corporation was an American energy, commodities, and services company based in Houston, Texas.
• It was founded in 1985 as a merger between Houston Natural Gas and Inter North, both relatively small
regional companies.
• Enron employed approximately 20,000 staff and was a major electricity, natural gas, communications and
pulp and paper company, with claimed revenues of nearly $101 billion during 2000.
• Fortune named Enron "America's Most Innovative Company" for six consecutive years.
• At the end of 2001, it was revealed that Enron's reported financial condition was sustained by
institutionalized, systematic, and creatively planned accounting fraud, known since as the Enron scandal.
• Enron has since become a well-known example of wilful corporate fraud and corruption.
• The scandal also brought into question the accounting practices and activities of many corporations in the
United States and was a factor in the enactment of the Sarbanes Oxley Act of 2002.
• The scandal also affected the greater business world by causing the dissolution of the Arthur Andersen
accounting firm.
• Enron declared its bankruptcy on December 2, 2001,
Products

• Products traded Enron


• Petrochemicals
• Plastics
• Power
• Pulp and paper
• Steel
• Weather Risk Management

• Oil and LNG transportation

• Broadband

• Principal investments

• Risk management for commodities

• Shipping / freight

• Streaming media

• Water and wastewater


Corporate and Corporate Governance

• Corporate is the most common form of business organization, and


one which is chartered by a state and given many legal rights as an
entity separate from its owners

• Cooperate governance is a set of systems , structures ,processes


and mechanisms by which a corporate entity is led, directed and
controlled in the best interests of shareholders and other
stakeholders
Sarbanes-Oxley Act in 2002

• Aimed at restoring investor confidence in the United States capital


markets, the Act introduced a number of regulatory reforms in
accounting and in required corporate reporting
• Introduced regulatory reform in the accounting profession,
imposed additional disclosure and financial reporting
responsibilities for corporations and created individual liability for
top executives
• The act prohibits an outside auditor from providing any other
concurrent services, namely consulting, to the company to which it
is auditing
Recommendation

• Transparency and accountability at the decision-making level of the


firm
• Having transparent corporate boards makes it definitely more
desirable for managers to commit to a no bribe policy when
dealing with public officials who request support with regards to
outstanding payments
• This transparent system makes bribery in general much harder
• Tax reliefs, the offer of premiums for corporations or the
introduction of not profit-orientated remuneration systems
Conclusion

• Enron Corporation was an American energy, commodities, and


services, company based in Houston, Texas
• Enron’s meltdown exposes at least several key corporate
governance issues which are the importance of the board’s
oversight power and the potential conflicts of interest arising from
working too closely with auditors
• The Enron failure has not been the result of just questionable
activities by Enron’s executive management team
• The cast of contributors to the failure and bankruptcy are both
inside and outside the company, it’s the total system that resulted
in failure.
Add a Slide Title - 4

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy