Enron Was One Of The Largest Electricity And Natural Gas

Enron was one of the largest electricity and natural gas companies in the world located in Houston, Texas. On December 2nd 2001, Enron filed for chapter 11 bankruptcy when it was found by the SEC that they were misstating their income and their equity value fell below what their balance sheet had stated. The stock of the company was once selling around $90 per share and had a net worth of $70 billion dollars. At one point, the company stood as the 6th largest energy company in their world known for their innovativeness and is now known as one of the largest accounting scandals in history. The major contributors to the scandal was Ken Lay, the CEO and chairman or Enron and Jeffery Skilling, the CEO and president of Enron at the time of the†¦show more content†¦Shim’s notes). They can also be defined as basic principles or notions of appropriate human demeanor. Dr. Shim’s notes also state they are accepted standards of good behavior that govern the conduct of an individual or a profession, which is the complete opposite of how Enron behaved. Enron failed to follow the code of ethics when they misstated their income and chose not to provide their earnings on their financial statements. The Institute of Management Accountants created a code of ethics that include: competence, confidentiality, integrity, credibility and resolution of ethical conflict which provide clear and concise standards that should be met in the work place (Dr. Shim’s notes). It was made evident that in the case of the Enron scandal, they have failed to abide by this cod e. Competence is to perform professional duties in accordance with relevant laws, regulations, and technical standards. It also should provide decisions that support information and recommendations that are accurate, clear, concise and timely. They fell guilty of breaking this standard by not producing clear and accurate reports which in turn lead to laws and regulations being broken. Enron was guilty of misstating their income and not including their earnings on their financial statements. Confidentiality is keeping information confidential except when disclosure is authorized or legally required. ItShow MoreRelatedEnron Corporation : A Foundation Of Fraud, Corruption, Greed, And Immorality1547 Words   |  7 Pages â€Æ' Enron Scandal December 31, 2001 will forever be etched in history as the day that one of the biggest white collar scandals came to an end. Electric and natural gas giant Enron was found to have been defrauding its investors out of billions of dollars in order to increase its stock prices, and fatten the pockets of high executives particularly Chairman and CEO Kenneth Lay, President and COO Jeffrey Skilling, and CFO Andrew Fastow. 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