The Enron Scandal And Its Impact On The Business World

Ethics in the business world can often times become a second priority behind the gaining of profits and success as a company. This is the controversial issue that led to the Enron scandal and ultimately the fall of this company. Enron Corporation was an energy company, and in the peaks of their success, they were the top supplier of natural gas and electricity throughout America. Enron Corporation came about from a merger between Houston Natural Gas and InterNorth. Houston Natural Gas was a gas providing company formed in Houston during the 1920’s. InterNorth was a company formed in Nebraska during the 1930’s and owned one of America’s largest pipeline networks. In 1985, Sam Segnar, the CEO of InterNorth bought out Houston Natural Gas for $2.4 billion. A year later in 1986, Segnar retired and was replaced by Kenneth Lay, who renamed the company and created Enron. Enron was the owner of the second largest pipeline in America that measured over 36,000 miles. The co mpany was also the creator of the â€Å"Gas Bank†, which was a new way to trade and market natural gas and served as an intermediary between buyers and sellers. As the company continued to develop, it became more of a trader rather than a producer of gas. This trading extended into coal, steel, water and many other areas. One of Enron’s largest successes was their creation of a website called, â€Å"Enron Online† in 1999, which quickly became one of the top trading cites in the world. By the year 2000 Enron as a company wasShow MoreRelatedEthics Standards And The Field Of Accounting950 Words   |  4 Pageson accountants to accurately report their financial information and give sound advise and consultation in regards to their business. There are standards and rules set in place to ensure that ethics and information is reported accurately. 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