Enron Energy Company – Assignment Example
The paper "Enron Energy Company " is a wonderful example of a business assignment. Obviously, Enron behaved unethically. According to documents which were filed in a court of New York by the Enron energy company, the top executives of the company enriched themselves greatly in the year 2000. That’s before the bankruptcy of the company in 2001. The consequences of this were, among others, the high levels of job loss by its employees and also their pension savings. The top executives departed with large amounts of dollars in bonuses and revenues awarded to them by themselves, selfishly. The first step should have been taken by the government long before the Enron case. However, it was only after Enron that measures were adopted to prevent cases like this. One of the major steps to monitor all the companies inclusive of the fortune 500 was the sighing into law the Sarbanes-Oxley Act in July 2002. This act is sometimes simply known as Sarbox or SOX. The reason for the Sarbox act was to enhance legislative changes to the financial practices and also the corporate governance streamlining. The Act introduced new rules with a major objective of the investor’s protection. The investor’s protection would be ensured through the improvement of the reliability and accuracy of the disclosures of a corporate business. It also ensures justice is done to wrongdoers and the shareholders and workers interests are protected. (Sarbanes-Oxley Act Forum, 2008). Arthur Andersen, the auditor of Enron was found guilty for obstruction of justice. This was due to his actions of destroying relevant company documents in an attempt to hide the fraud. However, the Supreme Court overturned its decision later which upset the public. As a consequence, Andersen lost his professional practice and Enron lost its customers that led to its closure. This could have been prevented by good corporate governance according to Tedlow (2007).