Enron Corporation, The Scammers Of The Century

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Enron Corporation, the scammers of the century

Enron was valued as one of the 7 most successful companies in the energy field, considered the most profitable in the United States, but they say that not everything is perfect, the corporation enron only 24 days to go bankruptWorldwide for the accusations of fraud, bad financial management that came out in 2001 since that time the investigations of the American authorities began. The Enron corporation could not keep its farce coming to light infinities of financial problems. Next, it will be explained how the creation of this successful corporation was, also its bad management from the beginning of its activities.

The Enron Corporation in 1985 through a fusion of huge gas pipelines (Houston Natural Gas with Inter North) was the union of these 2 companies, to create the Enron corporation becoming the most powerful marketer in the United States, also a tycoonBusiness entered Enron, Kenneth Lay the former president of the Houston Natural company with him in charge of the company in the course of time became part of new markets in the areas of telecommunications, insurance, risk management etc. While the company began to have considerable profits, many uncertainties that make us think that the bankruptcy of this company was due, everything begins with the rumors of bribes payments that were made on various continents in order to obtain contracts, anotherVery peculiar thing was that Enron operators make bets on oil prices always obtaining the triumph something very convenient for them, but for the other desicuations because Enron never lost it should be noted that the price of oil had variations and with thisUp to 10% of the investment, these facts brought largely distrust of many entrepreneurs, Enron was a company that was always characterized under the mantle of moral righteousness. First of all, poor management management that are carried out in a company there are always guilty then is this case who are the main ones involved in the Enron case? As we already know the tycoon Kenneth Lay is the first involved since he assumed the position of director in Enron and the bad decisions that I made a lack of professional ethics, as a second involved we have Jeffrey Skillings, a brilliant advisor who had the company, Skillings IdeoA magnificent project called "Gas Bank" This meant that Enron would enter as an intermediary for the purchase of gas in producing networks in order to sell thousands of consumers Enron guaranteed supplies and prices, charging commissions for all transactions, and assuming allThe risks associated with contracts, for Kenneth Lay was a magnificent idea was then that they created a division within the Enron Corporation called “Enron Finance Corp."This division had an important mission to operate with futures (future prices) contracts of gas, this was a revolution attracting many investors, spectators, commission agents etc. Another person who had a lot to do with Enron’s fraud was Andrew Fastow, the former financial director was responsible for showing that Enron was at his best with great profits which was the opposite year after year Enron year lost liquidity, before all these eventsWhat was the central problem? The Enron company entered the market showing great profits, were based on valuation methods (Mark to Market) that is, it could allow estimated profits as “real” obtained by all its operations, everything was a farce manipulated their accounting (financial statements) triedovervalue the company with the purpose that many investors begin to compare shares, even convinced many of their employees to invest their money in the company. They even hired the services of Arthur Andrew Auditor Company that helped Enron to support the great profits when in reality the energy company had more debts than utilities. What did they do wrong, from the ethical and financial point of view? The Enron company began very badly since the beginning of all their activities did not have an ethical responsibility, since they only thought about obtaining their own benefits, they violated the laws and especially betrayed the confidence of those who believed in them leaving their own employees that harmed their own employees thatThey were the most aggravated running out of work, without payment for their services, and with all their lost savings product of the purchase of shares they carried out (shares that at that time had a value of $ 90 passed to a decline at $ 5 perAction) What can we learn from this case for accounting-financial management of companies in our country? The accounting management of a company is a responsibility that must be taken seriously, ethical professionalism, for this the organs of a company must begin with having a mission and clear vision of how they want to be seen before others, knowing how to choose a staffIdeal is fundamental, on the other hand, the accounting part in a company must be clear without information omissions in this way we will be able to know the real state of a company.The image of a company bringing fatal consequences such as the bankruptcy of your business. On the other hand, a company that has ethics will always govern through veracity respecting all the jurisdictions that the State establishes, for example, declare its income and expenses (real) to have all its collaborators on the payroll, pay all its taxes etc. It is important that there is a monitoring in a company, but above all a constant communication with all areas of the company, in this way to have a necessary information in which we will allow us to be able to make good decisions which guarantees success ina company. The bad actions that are carried out in a company sooner or later are discovered, it is not possible. We do not make the errors of the corporation Enron "the scammers of the century". 

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