The Beginning of the End of Enron

The mission of the Financial Accounting Standards Council (FASB) is to establish and improve financial accounting and reporting standards to provide guidance and education in general. Accounting standards help analysts, potential investors and corporate individuals determine and compare financial performance of the company. In recent years, the wave of accounting scandal broke out, some companies admit that they follow fraudulent accounting procedures and postpones concerns about the company's financial performance.

The collapse of Enron, this is a story of old fashion robbery and terrible behavior, leading to the end of Enron. Responsible managers can only perform this type of fraud. Enron's checks and balances have not been confirmed, and many people who participate directly or indirectly become rich. People, power, and greed are the beginning of the end of Enron. To understand what is wrong with & lt; Tab / & gt; Enron, we need to understand the importance of proper management system within the organization. "System theory has had a major impact on the management science and the understanding of the organization. First of all let's see what the system is:" The system is an integrated set of parts to achieve overall goals When a part of the system is deleted, the nature of the system has also changed. "Compared with Enron," system "is a profitable company. What is going on is to achieve this goal

Background Ansai began to face many difficult economic conditions. In 1988, deregulation of the electricity market was implemented, Enron redefined the business as an energy broker and bought a vibrant company. This company became a "broker" in the electricity industry, connecting the buyer and the seller. Enron accepted a culture that he said "wise". Pushing the limit is considered a survival skill; CEO Jeffrey Skilling's motto is "Run it right now, Implement it, Improve it". This culture praises innovation and unconstrained ambition, and publicly punishing bad performances can generate great profit in the short term. However, in the long run, it is becoming increasingly difficult to achieve added value by "always improving betting".