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I.

Group 1 (F-432)

Aguas, Nathalia Shane P.

De Leon, Lheyanne Coline G.

Fabon, Aiza M.

Feliciano, Jemaica D.

Garpo, Alyanna D.

Garpo, Alyza D.

Salvador, Mycae Genea B.

II. (TITLE-2 VARIABLES)


III. BACKGROUND OF THE STUDY

This presentation focuses on Enron Corporation. Enron Corporation was formed

in 1985 when InterNorth acquired Houston Natural Gas. It is one of the largest integrated

natural gas and electricity companies in the world. It marketed natural gas liquids

worldwide and operated one of the largest natural gas transmission systems in the world,

totaling more than 36,000 miles. It was also one of the largest independent developers

and producers of electricity in the world, serving both industrial and emerging markets.

Enron was also a major supplier of solar and wind renewable energy worldwide, managed

the largest portfolio of natural gas-related risk management contracts in the world, and

was one of the world's biggest independent oil and gas exploration companies. Enron has

approximately 21,000 staff and claimed revenues of nearly $111 billion in 2000. The said

company experience bankruptcy in 2001.

The purpose of this study is to identify and analyze the organizational makeup and

ethical issues that Enron encountered during and after it collapse in year 2001. The

researchers will profile the company’s social and ethical practices, it also examines

conflicting issues that arises in Enron Corporation, including how their ethical behavior

affected corporate governance and how it affects the company itself.

1. Body of related literature


IV. IDENTIFICATION OF THE RESEARCH PROBLEMS/SUB-PROBLEMS

Before the fall of Enron Corporation, it is known as a successful, highly

profitable and eco-friendly company. Despite of this, Enron turned out to be a

company that shows deceiving results.

The problem is that due to the inadequacy in the financial statements of

Enron, the CFO’s or Chief Financial Officers used Special-Purpose Entities (SPEs)

in order to hide the debt of the company. Special-Purpose Entities are entities that

a corporation can use to finance a large project without putting the entire firm at

risk.

Aside from that, the company


V. Research Objectives

Everything in life holds some kinds of objectives to be fulfilled. This study is not

an exception to it. The following are a few straight forward goals which we have

tried to fulfil in the project:

1.) To know the crises of Enron

2.) To know the accounting irregularity followed by Enron

3.) To highlight the failure of the regulatory authority loopholes in corporate law.