Enron is a Northern Natural Gas Company which was found in 1930 in Omaha,

Nebraska. It was organized by three other company which is North American Light & Power
Company, United Light & Railways Company and Lone Star Gas Cooperation. North American
Light & Power Company and United Light & Railways Company owned 35% of the stake in the
company and Lone Star Gas Cooperation owned 30% of the stake.

Enron Corporation was one of the most threaded companies in the world for gas and
electricity lead up to it's own bankruptcy in 2001. The company marketed worldwide natural gas
liquids and operated one of the world's largest natural gas transmission systems for over 36,000
miles. It was also one of the world's largest independent electricity developers and producers
serving the industrial but also the emerging markets. Enron was a multilateral largest
manufacturer of photovoltaic and wind energy, managing the world's leading portfolio of risk
management contracts related to natural gas as well as being one of the largest independent
petroleum and gas companies in the world. Enron was the biggest wholesale gas and electricity
marketer in North America. Enron pioneered the transformation of the efficiency industry
inovative trading products, for example gas future and climate future. The company faced
difficulties after an upswing in growth in the early 1990s. The size of the losses of Enron were
concealed from the inventors. The company came to light after a failure of a merger agreement
with Dynegy Inc. in 2001. The company ranked seven at Fortune 500 and its failure was
America's largest bankruptcy.

How Enron deal with the unethical problem

On December 2nd, 2001 Enron filed for Chapter 11 bankruptcy protection. All the
employees less than four month of Skilling resignation. Moreover ex Enron Corporation CEO
Jeffrey Skilling was charged for committing 35 counts of fraud and Lay was indicted as he was
charged for committing bank fraud, false statements, and conspiracy. Meanwhile the employees
lost their job and also lost all of their pension. Enron Corporation massive financial fraud which
led to multiple court hearings passage of Sarbanes –Oxley Act. This is to avoid to fallout such as
Enron corporation.
 Aftermath the bankruptcy Enron Corporation became Enron Creditors Recovery Corp
(ECRC). That was the new name of Enron. United States Bankruptcy Court for the Southern
District of New York approved Enron’s plan of reorganization and it was new board of directors
decision to change the name. Enron Creditors Recovery Corp new mission was to reorganize and
distribute assets of the "pre-bankruptcy" Enron for the benefit of creditors. In connection with
Enron’s emergence from bankruptcy in November 2004, a new board of directors was appointed,
and they adopted this mandate: obtain the highest value from the company's remaining assets and
distribute the proceeds to the company's creditors. As part of its efforts, ECRC has successfully
undertaken legal action to hold responsible the major financial institutions that it contends
assisted the pre-bankruptcy Enron deceive the public. Those legal efforts have, to date, resulted
in settlements of almost $2 billion in cash. Additionally, as part of these settlements, the
defendants have agreed not to receive distributions upon claims against Enron worth
approximately $1.38 billion. (Enron Creditor Recovery Corp.)

REFLECTION ON THE UNETHICAL ISSUES (ENRON)

The Enron scandal was a relatively popular corporate collapse in the United States where
many savings and lending banks failed in the 1980s. Top officials at Enron have abused their
power. A lot of information is altered for their own benefit. Employees and the general public are
only used as tools to gain such interest. However, the events of the Enron scandal have made the
United States aware of the need for significant reforms in accounting and corporate governance
as well as taking seriously on the ethical quality of business culture there. Therefore, Enron will
be a good lesson not only for the society of the United States but also for the other country. For
example, we learn from Enron that an organization or company must adopt a healthy corporate
culture. This is because Enron’s unhealthy corporate culture has been the cause of its collapse.

Enron officials always want to be the best and when they face failures and losses, they
cover it up for the sake of maintaning their reputation and not trying to improve the situation.
Conflicts of interest were one of the reasons Enron collapsed so quickly. Conflicts of interest can
be avoided by limiting and controlling the firms that provide services to the organization. This
can also facilitate monitoring the status of capital received by the firm.
 By the time of Enron’s collapse, the company had deceived many investors by
manipulating its book for several years. Enron is an example of a company that has broad code
of ethics but its ethical statements do not apply throughout its operation. The company needs to
embody respect, integrity, communication, and excellence. Ethics also an important element in a
company that wants to thrive. Therefore, the lesson we can learn is to monitor ethics more
closely. This is to prevent abuse of power in any organization. Through this Enron collapse, we
can be more vigilant even if unable to control company ethics directly, at least there is an intact
mission to do the right thing.

Enron is also an example to many company leaders implementing the right leadership
and management qualities, as well as having a clear vision and mission. However, their vision is
unrealistic and they often make a deal regardless of the cost. For them, continued profit and
growth is enough. The various innovation made in unprofitable markets even they do not
understand what they do. Their followers also lose personal value and responsibility to society.
The next lesson is a organization has the right to implement anything. They will treat
subordinates or the middle class according to their wishes. Sometimes the organization will
behave well for long-term purposes. Therefore, it is up to the company to take how much risk
with the cost it has to bear. As regular employees, we are only able to do our best according to
the will of the organization. We can only hope that they are doing the right thing.

In short, top officials at Enron have failed to take responsibility and not adhere to ethics
as top officials. They manipulated information while engaging in inconsistent treatment of
internal and external constituencies. These leaders put their own interests above those of their
employees and the public, and failed to exercise proper oversight or shoulder responsibility for
ethical failings. Sadly, the followers were all too quick to follow their example.

Reference

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Hoseini, S. B., & Mahesh R. (2016, August). The Lesson From Enron Case - Moral and
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Johnson, C. (2003). Enron’s Ethical Collapse: Lessons for Leadership Educators. Accessed on
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