Edmon G.

Lopez
BSA-3

ENRON SUMMARY

It was all started with a story about the background of the Enron Company and
an outline of what was about to happen, as well as an introduction to the people
responsible for Enron's demise, especially Ken Lay, Jeff Skilling, and Andrew Fastow.
Ken Lay is the son of a preacher man who began with low beginnings and concluded
with a PhD in economics. He is one of the individuals who vigorously fought for energy
deregulation in the country.

The government chose to de-regulate the energy industry, which led to Ken
Lay's creation of Enron in 1985. Following the merging of Houston Natural Gas and
InterNorth, Kenneth Ley formed Enron in 1985. Ken Ley, who grew up in poverty, wants
to change his life as a result of the Enron crisis in the energy industry. During his first
year as CEO, the business was engaged in a controversy over the Valhalla incident, in
which one of Enron's employees gambled with the company's reserves. Ken Ley, who
encourages gamblers to generate more money for the company, finally denies when a
gambler loses and the company is on the verge of going bankrupt. To get wealthy, Ken
Lay employed Jeffrey Skilling, who has the ability to modify the company's game plan.
Skilling, as CEO, wants Enron to exit the energy business and enter the stock market.
Skilling then used mark-to-market accounting rather than traditional historical
accounting. In this scenario, the business is just speculating on the value that they will
derive from the project that they are going to embark on. This enabled the company to
show earnings on their financial accounts without really receiving the funds, allowing the
executives to enjoy their bonuses. As a result, Enron has the most gas in North
America. Following the reception of project proposals. Upon receiving the projects,
Andy Fastow, the CFO, took on the role of buying Enron's bad debt, hiding the
company's debts while running other ventures with his newly formed organization. After
the failure of its business in India due to mismanagement and poor planning, Enron saw
an opportunity to increase its revenue through a 20-year contract with Blockbuster that
will be withdrawn due to lack of technical improvements.

Despite the failure, Enron managed to raise its shares to an all-time high of $ 90
per share. The interview was strange, as it took hours to produce documents at
McLean. Skilling had a chance to speak with McLean after the interview, but he said he
doesn't care what the interviewer says about the business as long as he doesn't make
Enron look bad. Before the interview, an analyst questioned Enron's reluctance to
present a balance sheet in addition to annual financial statements, after which Skilling
described him as a "jerk." The public has been bombarded with concern and Enron is
trying to find another source of revenue. This opened the door for them to start an
electric company in California. Greedy, Enron began tampering with the power card, for
such reasons it demanded a sudden power outage from power plants and then raised
the price on the market.
 ENRON

Reflection Paper

Enron, was considered as one of the most successful and largest firm that turned
into America's greatest scandals in 2002. Within a year, the company had gone from
being one of the most inventive late-twentieth-century companies to being associated
with corruption and mismanagement. Enron stock peaked at $90.75 in August 2000 and
plummeted to $0.67 in January 2002, according to CNN. The top 10 Enron executives
sold their business stock as a result of their downfall. Furthermore, due to 401k limits,
lower-level employees were unable to sell their stock, and many lost their life savings as
a result. Enron's top 140 executives, on the other hand, got $680 million in 2001, with
Kenneth Lay and Jeffrey Skilling receiving $67.4 million and $41.8 million respectively.
This brought enron to its greatest downfall and widest anomaly.

Large firms have a great role in our lives and country. Those that are led by
highly intelligent and experienced people, are the engines of our economy's growth.
They are the community's source of wealth, employment, products, and services. On
the other hand, if we are going look at the scandal happened on enron, too much
intelligence could bring a worst scenario. The hardest part of being too smart is that we
forget to value the dignity that we have. We tend to use our skills and knowledge to
benefit from the expense of other people. Instead of using it to improve ourselves and
reach our goals through hard work, we always prefer to find ways on how to achieve our
dreams easier, or it could be say, easiest.

After watching the movie, I became aware of the fact that my chosen career is
not just a normal kind of journey. It might be one of the toughest field because it is the
exact position where a lot illegal actions and fraudulent activities could be done. We will
be involve with a lot of transactions that includes a large amount of money. And I guess
watching enron would bring us the lesson that we should have the credibility and the the
loyalty in our work and actions. We should have to make our goals happen through
hardwork because that is the best feeling that we can ever have. It may be harder and
will take a lot of time but it is the safest thing to do.

Moreover, I learned that having a dignity and strong personality is much better
than having a high intelligence. Because if we have that dignity and strong personality,
we are going to fight for our goals knowing that everything will be possible if we will
strive for it with hardwork. On the other hand, having a high intelligence is
advantageous but it is also dangerous. Being too much intelligent will bring us the
negative insights that success or wealth can be earn on easier ways. That hardwork is
just for people with poor mindset. And admit it or not, one of the easiest ways to
become successful and rich is through participating in fraudulent activities that is now a
worldwild issue. Especially on our government wherein a lot of amount goes to the hand
of an individual and use their intelligence to hide the corruption.
 In conclusion, ethical principles for me are still doing big part in terms of
development. We should not do the same actions made by the employees and
executives of enron because at the end of the day, karma is the hardest enemy that we
can have.