The Fall of Enron

Later, Enron began using accounting scandal called market-based accounting. With this, Enron was able to predict the potential profit immediately after the conclusion of the contract. This strategy is known for Jeffery Skilling, hired by Lay as a new CEO. This strategy does not consider whether Enron gains some benefit from the contract. With this scandal, Enron can own a company that does not make profits. Skill is also responsible for fostering a highly unethical corporate culture with Enron.

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

There were five major auditors before Enron collapsed in 2002, and since Arthur Anderson closed, the number has now been reduced to four, the latter responsible for auditing Enron It is a company. A lawsuit that accused accounting firms of becoming one of the crisis factors of Enron damaged the company's reputation in that it caused bankruptcy after transcending savings and losing customer trust. The company has a history of operations for decades