The report is divided into two parts. Part A shows the case study and part B shows the analysis.
In Part A, I have chosen the company based on historical case. Enron Corporation, an American well known energy company who used to be a leading company in the whole world. They played a vital role when there was no government rule in the energy market. They act as a middleman in the market. They rapidly expanded their business and attract the people to invest in their company. They became greedier and wanted to made more money within a few days with the help of illegal activities. Because of their wrong activities their company died within two year. All this happened because of media was behind this. In 2001, the company was circulated as bankrupt.
In Part B, I have analysed more detail on this Enron scandal. Why it is happen? Who was behind this? Who are mostly suffered? To support this, I have discussed Carroll’s four part of corporate social responsibility. It will help to understand, why ethics is necessary in the organization. In case of Enron, they didn’t follow ethics in their organization. They were involved in wrong and illegal activities which lead to company to direct bankruptcy. Carroll’s four part of corporate social responsibilities are- economic, legal, ethical, and philanthropic. Each of part describes how organization follows ethics, laws, rules and regulation, and practices it. And also, the impact if anyone doesn’t follow this.
Table of Contents
Executive Summary 2
1. Introduction 4
2. Part A
2.1 Media Exposure 5
2.2 Company Overview 5
3. Part B
3.1 Largest Corporate Scandal 7
3.2 Carroll’s Four Part of Corporate Social Responsibility 9
4. Conclusion 13
Enron Corporation, an American energy company located in Houston, Texas. It had around 22,000 staff and was the world’s largest leading company. It provided electricity, natural gas, commodities, broadband services, and also had paper companies. In 2000, it claimed that they made a profit of $101 billion dollar. A well-known magazine Fortune gave a name to Enron which was “America's Most Innovative Company”.
In 1996, suddenly energy market had changed, there a new rules established which was competitive market will set the price of the energy instead of government regulation. That time Enron act as a middleman between others competitors. It started trading energy instead of buying or selling it. Enron’s success rate grew rapidly. It attracts the investors to invest in their company, and people did invest because it was one of the leading companies those times. Enron found that debt cannot make the statement attractive so they made the statement in a way that can attract the investor as well as the shareholders.
But truth cannot be hiding for a long time. One day their crime revealed to everyone. They admitted their fault. Their stock price went down and the company are circulated as bankrupt.
To analyze Enron’s case, I have used Carroll’s four part of corporate social responsibility which will help to make a clear view of the case.
2. Part A
2.1 Media Exposure
Enron Corporation was the biggest provider of American energy and services which was located in Houston, Texas. It was known as the American’s most innovative company which was successfully develop their business and increase their wealth suddenly. They claimed that they made around $101 billion revenues in 2000. At the end of 2001, Enron was caught for doing fraud which was known as ‘Enron Scandal’. It was revealed that they were related with accounting fraud. All other drama are- corporate greed, investors lost their money, management betrayal in a veer of publicly assumed corporations. Media which include print and television had covered all the scandal news of Enron. Media had covered the scandal in such a way that it looked like a fashion marks. Also media covered the whole news story till