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How did the corporate culture of Enron contribute to its bankruptcy?
Wiki User
∙ 9y ago
The only thing Enron executives were to think about was making a profit by any means necessary. Ethics were not valued in this type of corporate "survival of the fittest" atmosphere. People who didn't produce were let go, prompting workers to take drastic measures just to keep their jobs.
Wiki User
∙ 9y ago
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What effect Enron conduct had on stock prices?
After the Enron accounting scandal came to light, its stock price plummeted to 0, which wiped out many investors who had purchased Enron's stock.
What was Enron's mission statement?
Enron's motto was "Respect, Integrity, Communication and Excellence." Its "Vision and Values" mission statement declared, "We treat others as we would like to be treated ourselves....We do not tolerate abusive or disrespectful treatment. Ruthlessness, callousness and arrogance don't belong here."
Why is stealing bad for the economy?
lol, Ask Martha Stuart... or Enron. Im sure those peeps will tell you.
Is the concept of natural selection relevant in an economic or political context?
Economics: This is how you think about it. In Dec. 2001, the US energy company Enron collapsed, prompting much debate about the coporate culture in the company. Enron's chief executive Jeffrey Skilling was a strong advocate of "Darwinian" management, with constant staff appraisals and the automatic sacking of anyone with the lowest performance rating. The suicidal actions of a "whistleblower" Sherron Watkins brought Skilling's "Darwinian" company crashing down to the ground.Politics: Soon enough after Darwin's publication of The Origin of the Species, a man named Herbert Spencer started advocating that it was the "duty" of the more "civilized" countries to colonize/ take over the "less" civilized countries. (Social Darwinism). This led to the Scramble for Africa, etc. Social Darwinism also was used not only to justify colonialism, but also racism. The whole idea of the "Aryan superman" began to spring, and soon Jews, etc. were loosing the few rights they had gained between 1850-1880. Needless to say, this eventually led the rise of eugenics, and the Holocaust in that manner.
What would cause a resurgence of planned economies?
Planned economies rely on centralized government to control all or most factors of production and to make all or most production and allocation decisions. A market economy is an economy in which individuals control production and allocation decisions through supply and demand. Planned economies appeal to people as a solution to a large amount of poverty. They promise a high rate of growth in economic prosperity, an improving quality of life, and a different distribution of wealth than market economies. When the economy fails to improve, and quality of life in the country fails to improve at the pace of market economies, the government tends to relax its control and a market economy develops. Previously planned economies are controlled by oppressive and unaccountable politicians who eventually lose power. If an economy in a nation is characterized by a large number of people in extreme poverty and a high unemployment rate, a planned economy could be used to bring order and to stimulate productivity. Former Soviet Union disbanded due to food shortages in their planned economy, showing poor planning by their leaders. Theoretically in a market economy, when a shortage of a good arises, the prices of that good will rise giving an incentive to entrepreneurial business people to produce more of that product so they can reap the increased profits. Recently, a drought killed a large amount of corn crop, driving the price of beef and other foods up. If there were a severe drought enough to where there is not enough water to grow crops and food needs to be rationed carefully, the government may move towards a planned economy. America has a mix between market and planned economies, in that some economic activity is subsidized while some businesses have regulations. For example, when Enron caused a spike in energy prices beyond a reasonable amount in California, the government forced the company to lower its price. Being the only option for energy needs in areas where Enron provided service, a natural monopoly, Enron could have in a true market economy charged as much as they wanted for electricity and all those involved would have taken great profits.
What was Enron?
Enron was a Houston-based energy-trading and utilities company known for one of the biggest accounting frauds in history. The company filed for bankruptcy in 2001 and has since a symbol of corporate corruption. See related links for Answers.com references on Enron.
When did Enron stop trading?
Enron was filed for bankruptcy on December 2nd 2001
What company filed the most notorious bankruptcy in US History?
ENRON
When did trading stop?
Enron was filed for bankruptcy on December 2nd 2001
What were the common aspects that were necessary for the Enron and WorldCom debacles to occur?
The first factor behind the Enron and MCI WorldCom debacles were criminal behaviors that included the deliberate falsification of accounting. The secondary factors came from a corporate culture lacking ethics. A combination of unethical business practices coupled with criminal behavior and intent created for the downfall of Enron and WorldCom.
Sherron Watkins blew the whistle on what corporation of which she was a VP of corporate development?
Enron
In what year did WorldCom file for bankruptcy?
WorldCom filed for bankruptcy in 2002. At the time, it was the largest bankruptcy ever, with $107 billion in assets. This almost twice as much as that of Enron Corp.
How safe is AAA corporate bond?
Very safe, the biggest risk is a lower credit rating. Those were my thought until Enron. Enron went from AAA to worthless very quickly. Fortunately, we did not own Enron paper.
How did AEP withstand the Enron scandal?
AEP was able to emerge unscathed by the exposures of accounting scandals and corporate malfeasance throughout the energy industry following the Enron meltdown.
What are the most important lessons to be learned from the Enron scandal?
The Enron scandal is the most significant corporate collapse in the United States since the failure of many savings and loan banks during the 1980s. This scandal demonstrates the need for significant reforms in accounting and corporate governance in the United States, as well as for a close look at the ethical quality of the culture of business generally and of business corporations in the United States.
How did the Enron scanal effect Mirant?
Then the Enron bankruptcy and accounting scandal hit the news, and the entire energy sector was affected by the fallout. In less than a year Mirant's stock price declined about 80 percent.
Which Houston-based energy company filed for Chapter 11 bankruptcy and whose business conduct is one of the grossest examples of corporate greed and fraud in America?
The Enron Corporation which Fortune Magazine had called "Ameriica's most inovative Company" for six consecutive years before the fraud was diiscovered.
