Enron used to be a leading energy US corporation, which had evolved from an offspring of natural gas companies confluence in 1985 to a 101 billion USD revenue in 2000, until it collapsed in a fulminate fashion – as “…it took twenty-four days to go backward”, at the beginning of the century. It might be a harbinger sign that within only two years after it was established, a scandal concerning oil traders diverting company funds to offshore accounts explodes. Moreover, what should have been of worry, the eyes of Kenneth Lay, the founder of Enron, had been blinded to the wrongdoing, as other failures of that time would have been uncovered. Had not Enron’s executor bluffed the market of the company’s loss of one billion to 140 million, the bankrupt would have been inevitable. As the company begins to trade natural gas commodities, it had become one of the leading natural gas merchant until 1990’s.
Kenneth Law having hired a new chief executive officer, Jeffrey Skilling, market-to-market accounting is approved for Enron, allowing the company to book possible profits regardless of their performance reliability. This is the core to understanding why the business managed to look prosperous even if it was not so. Keeping in mind the story of Enron is of no doubt a story about people with their weaknesses and strengths, lieutenants enforcing the Skilling’s instructions must be paid attention to, as their personal abusing add to affair collapse mechanism. A card house of Enron experienced cheating stock market analysts by means of meeting their projections cashing highly costly options and ‘dumping’ them. The hypocrisy of the behavior lies where tricky PR campaigns involved in deception mount to show themselves as a flourishing establishment. And in spite of the fact that projects fail, non-existing profits are reported.
The fraud came to an end in 2001 when reported financial condition was revealed to be substantially substituted by a logical and a systematic jugglery, making Enron an adverb of corruption.
Enron is a separate example of people’s weaknesses, with dishonesty at its top. At the same time, this was a company holding 22,000 employees and one has no grounds to consider all of them accessories. Just as for the nation to consider, it is unreliable to apply one particular corporation to the society as a whole, assuming, however, that there might be numerous enrons acting nowadays. It is noteworthy that Kenneth Lay who eventually suicided, was for sure, due to his chronological presence, in close to controlling the situation throughout the corporation, as well as executive officer, and financial services head. This is the most recent list of persons involved, minding that Louis Borget and Tom Mastroeni received their sentence in the 1980’s.
Once, creation a great doing ought to take great efforts, one can’t help recognize Enron personnel to go through an uneasy road of hard work, dedication and devotion, as it were. Had all these efforts been applied to a more tolerant channel, the fruits would become an occasion for the successors to admire honest smartness, sound agility, appreciative nimbleness, and constructive cleverness. But here, it started with pride and due to ethics failures went through inward decay to end with even physical termination. It is very ironic, in the view of the story moral, to undertake the motto ‘ask why?’. It served most probably a stimulus for the staff to self-develop and to get better. No matter how rhetorical it may sound now, but did anyone within the corporation and nearby ask why did it all seem so rosy?
Looking back at the entire story, it may be concluded that any action has good and bad sides. Enron’s mode of behavior owing to the bankrupt served a bad service to the national and maybe global economy, leaving more than two tens of thousands jobless. The happening undermined confidence to stocks, trust to financial forecasters diminished, demand for reforms become evident. Neither social nor economical sciences do not guide perfect studying tools, so this is the case of Enron that challenges both scholars and people to research the environment.
In a well-known psychological experiment, a group of previously agreed students claims a photo of an elderly man to be a woman, while one of them is unaware of the study conditions. The latter being under hidden camera watch, it is noticed that if at least five to eight individuals state the evidently wrong, the investigated person not uncommonly accepts the lie, and in doing so takes it as his own position. A human is a social unit and is in need for support from the surrounding. No matter how moral or ethical a person is, it should have a stable mind and a reasonably resistant psychics to ‘ask why?’ and to accept the answer whatever it might be.