In the mid-eighties a merger of two companies formed Enron Corporation. One man
turned the company into a supplier and energy trader; the CEO and chairman Kenneth Lay.
Enron Corporation was a U.S.-based energy corpora
...
In the mid-eighties a merger of two companies formed Enron Corporation. One man
turned the company into a supplier and energy trader; the CEO and chairman Kenneth Lay.
Enron Corporation was a U.S.-based energy corporation, also holding assets in commodities and
services, that filed for bankruptcy on December 2, 2001, after becoming the epitome of corporate
corruption (Olson, 2015). In the 1990’s – early 2000’s Enron was deceitful through
discrimination and fraud that focused on various laws and concepts of fiduciary duty that led to
the filing for Chapter 11; to be a deciding factor of a Congress Act for investor protection of
fraudulent activities. Economist Milton Friedman a well-known free market stance on social
responsibility influenced the ethical framework minds of the executives at Enron Corporation.
Let’s begin, when the company took advantage of the regulatory time’s because by the
late nineties investors were custom to seeing share prices skyrocket overnight. This was due to
the dot-com bubble being at its high point. Enron leveraged on its expertise and well-respected
brand name in creating Enron Online that fixated on trading commodities. During a time that
Fortune magazine named Enron “America’s Most Innovative Company” for six consecutive
years.To show the current market value for investments in the trading sector, mark-to market
would identify the liabilities and assets over time of the fair value to demonstrate a current
financial state. An effective yet devious technique for trading companies because it was a way to
discretely mask the operational expenses and financial losses of the company. A method that will
divert from the book value and identify the current market value measured on its security.
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