Enron Fraud Scandal: A Case of Ethical Corporate Governance

Individual report

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
The report brings forward Enron Fraud Scandal case which is one of the most known
corporate scandal which was sustained by institutionalized, systemic and creative planned
accounting fraud. The case explains management in relation to ethical corporate governance
and how Sabane Oxley Act of 2002 is applied for gaining analysis of where management was
wrong.
MAIN BODY
Discussing the Enron Fraud Scandal in relation ethical corporate governance
The Enron Scandal is ideally one of the most acknowledged corporate scandal where
collapse of business functional parameters have been analyzed with relation to false financial
reporting, auditing and corporate governance which are being proposed as one of the main
factor where company lack growth. The company management collective greed lead to eventual
downfall in corporate business performance metrics, corporate governance where brand lacked
beliefs and further functional synergy to gain stakeholders confidence (Scherer and Voegtlin,
2020). The motives and functional attitudes that were lacking functional scope of ethical
functional presentation of all data, accounting records lead to Enron Eventual downfall and high
risk factors. Corporate issue task force has been debated to value and disclose various energy
contracts for several years, where assumptions and estimates underlying earnings have
produced disclosures that were voluminous. The company also lacked ethical functional scope
segments where accounting fraud made misleading presentation among shareholders,
stakeholders at business and prominently there was wide lack of functional ethics. Reducing
hard assets while earning various papers profits served to enhance Enron return on assets and
reduce debts, which made company more attractive and misleading for investors to credit rating
agencies and further investors. This had made dampening energy market volatility and
reducing business opportunities for large, rapid trading gains that had formerly made Enron
highly profitable and were conducted at rapid pace with strategic goals of company, where it
lacked compliance with company risk management policies. Enron company violated public
disclosure rules, in dealings with banks and shareholders where bankruptcy report highlights
several company parameters to bring company deluge of deals with books in partnerships
involving potential corporate frauds. The company not only lost its professional goodwill and
shareholders l had lost 74$ billion leading to bankruptcy and employees also lost their jobs and
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