Enron Research Paper Example | Topics and Well Written Essays - 2500 words

Enron - Research Paper Example top, what exactly went wrong, and how this wrong was further fueled by an individual’s personal quest for gains, eventually turning the company into nothing more than a mere sand dune. A significant part of this research would also attempt to highlight circumstances under which auditors for the firm, Arthur Anderson failed to play its role as well as the failure of the federal government in its part to detect cracks in Enron’s policies and financial reporting to its shareholders. â€Å"In an attempt to identify the relationships, organizational and individual, that played a part in Enron’s fall, I will highlight the reasons that led to the eventual failure of Enron, the role played by individuals serving the management of Enron to hide information from their employees, stakeholders and the general public to elude failures and heavy losses incurred due to malpractices and willful fraudulent activities.† Based in Omaha, Nebraska, InterNorth was a very large company with investments in businesses ranging from plastics to petroleum exploration and so on. Primarily a gas pipeline manufacturer, InterNorth was also distinguished in its operations of the largest gas pipeline spread across North America. A legacy of Northern Natural Gas Company founded in 1932, InterNorth was formed as its holding company in 1979. Later in 1985, InterNorth took over Houston Natural Gas Company in 1985, in pursuit of expansionary production opportunities. For a while, the company was renamed HNG/InterNorth after the takeover, later named to Enron in just a few months. After the takeover, HNG/InterNorth fell into depth of $ 4.2 billion (Gavridis) following the acquisition of the company. In view of the critical situation, Kenneth Lay, then CEO of HNG, used Employee Stock Ownership Program to pay off the debt. After the settlement, the company, initially planned to manage two headquarters in Omaha and Houston, moved all its operations to Houston, Texas where HNG was initially based,