Corporate Fraud, Greed, Corruption, And Ethics - 1598 Words

I. Introduction Corporate fraud, greed, corruption, what company comes to mind when you hear those words? Enron! In this paper we will take a look into the corporate facts and history as well as, stakeholder relationships, organizational trust issues, ethical leadership and ethical culture at Enron. As well as where improvements could have been made to improve organizational trust and ethical culture before Enron’s collapse. II. Corporate Facts and History According to the Texas State Historical Association, organized in Omaha, Nebraska in 1930, InterNorth began as Northern Natural Gas Company.1 With revenues up to $7.5, it was one of the nation s premier pipeline networks. 1 To avoid potential takeover from corporate raiders, CEO Sam Segnar looked to buy Houston Natural Gas. In May 1985 InterNorth acquire Houston Natural Gas for $2.4 billion. Houston Natural Gas was originally formed in the 1920s from the Houston Oil Co., providing gas to Houston retail customers.1 According to the Texas State Historical Association, Houston Natural Gas had assets of $3.7 billion, sales of over $2 billion, and profits of $123 million.1 The two companies would be known as HNG/InterNorth and would be headquartered in Nebraska with Segnar as chairman and CEO. In 1986, Segnar retired and Kenneth Lay was named chairman and CEO. The company was renamed to Enron and the headquarters office moved to Houston According to the Texas State Historical Association, Enron, operated one of theShow MoreRelatedWorldcom Failure1198 Words   |  5 Pagesunprecedented number of corporate scandals: Enron, Tyco, Global Crossing, etc. In many ways, WorldCom is just another case of failed corporate governance, accounting abuses, and outright greed. Many people may question if there is a secret to operating a successful business in modern times. 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