Enron Scam: Leaders, Financial Statements, Lawsuits, Corporate Culture

Running head: ENRON SCAM
Enron Scam
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1ENRON SCAM
Table of Contents
Question 1........................................................................................................................................2
Question 2........................................................................................................................................2
Question 3........................................................................................................................................3
Question 4........................................................................................................................................3
Question 5........................................................................................................................................4
Question 6........................................................................................................................................4
References........................................................................................................................................6

2ENRON SCAM
Question 1
The leaders of Enron were immensely responsible for the financial scam that shook the
level of confidence of all the stakeholders of the company (Dibra). The senior level leaders of the
company were able to hide billions of dollars which were in debt due to failed projects and
dealings with other business organizations. Andrew Fastow who was the chief financial officer,
making pact with other major leaders of the company misled the directors of the company and
the audit committee regarding high risk account practices and also pressured Aurther Andersen
to ignore the escalated issues related to the scandal. The key persons who were responsible for
this major financial scam are Jeffrey Skilling, Andrew Fastow, Kenneth Lay and Rebecca Mark
(Bennett).
Jeffrey Skilling pursued his career in applied science from South Methodist University in
1975, followed by MBA from Harvard University in 1979. He utilized his graduation skills in
executing the business activities of McKinsey and Company. 1990 was a turning point in
Skilling’s life as he was appointed as the chief executive officer of Enron Finance Corporation.
The following year, he became the chairman of Enron Gas Company in 1991. 1997 was the era,
when he encountered enhancement in his professionalism. Major drive behind this was the
promotion to the position of President and chief operating officer of Enron (Brands).
Question 2
The financial statements of Enron became confusing to the shareholders of the company
as well as to the employees of the organization (Bennett). It was found that unethical practices
which were present in the organization and the complex business model of the company required