How Enron Started - How Can You Avoid This Happening To Your Company

How Enron Started - How Can You Avoid This Happening To Your Company?With the Enron scandal dominating the news lately, it is crucial that you learn as much as you can about what the case is all about. You need to understand just how far this company went in its inability to deliver on its promises and just how they ended up getting caught. Enron's past dealings do indeed have a lot to say about the future of financial institutions, specifically the one you are currently working for. Learning about what happened in the past is the only way you can prepare yourself for what will be happening in the future.We all know that companies have their ups and downs, and you should keep that in mind as you write this research paper. But no matter how much information you find on Enron, you must remember that it was an enterprise that caused a disaster story for many. The company made many promises to employees and customers alike, but it simply couldn't live up to those promises. This is why th e management went down as one of the worst ever found in the business world. While there is much to learn about Enron's downfall, you must remember that it was just that--a downfall.Remember that corporations that make false promises usually fail in the long run. When you are trying to win your employees over with a better salary or incentive plan, then you have some company to be thankful for. Knowing this, you can be sure that they won't stay loyal if a better offer comes along. You need to tell them why you can't make this better offer and focus on building up your relationship.When you get into the inner workings of Enron, it doesn't take long before you find yourself learning about all sorts of problems that occurred within the company. It wasn't enough that they had misled everyone with the promises, they took it a step further by not having adequate accounting records. For their part, executives admitted that the company's accounting records were nonexistent, so they got rid of them because their company had a problem.They also had 'failure to report' penalties and FBARs. Everyone working for the company knew these weren't real, so it is not surprising that the management decided to settle the fines. Keep in mind that all of these things started when the company made statements that did not represent the truth.Perhaps the biggest infraction of all was that they tried to file bankruptcy. The bankruptcy petition was very easily shot down by a judge, but the fact that they tried to file it anyway is what created a lot of controversy. There is nothing that can prove that the company actually needed to file bankruptcy, but it is still another example of how the company lied in its public statements.Having spent time with several former employees, it was easy to see why the company had problems. It was obvious that the employees and management didn't really know how to connect with each other. This is a problem that will always exist in any kind of business. Many of the people who worked for the company didn't feel like they were being treated fairly.Although there was nothing truly shady about the company, it is still important to learn the entire story of the company's downfall. You should also consider looking at the same sources as former employees have. Hopefully this research paper will help you learn more about what happened and what lessons you can take from it.