Enron's failure in 2001 is the biggest business bankruptcy and scandal ever while also spotlighting corporate America's ethical failings. It's a stark indication of the ramifications of being lured by charismatic leaders, or all the more particularly, those who look for excess to the expense of their employees. Unfortunately, those lost ethics killed the company while it harmed those who had gone along with scandal. Without a doubt, if there are benefits to be made, some kind of plan that endeavors to skirt the law or even cross limits will happen. It's been that way all through history. However, with every passing scandal, new rules and codes emerge that surpass those of the past. Keeping in mind Enron won't be the last case of corporate malfeasance, …show more content…
Enron is not only known for being the largest bankruptcy reorganization in American History and the biggest audit failure in history. The company was formed in 1985 after it merged with Houston Natural Gas and Inter North. A few years later the company hired Jeffrey Skilling it was his idea to merge the natural gas pipeline companies of Houston Natural Gas and Inter-North to form Enron. He initiated the selling of electricity, at market prices, and before long, the United States Congress approved legislation deregulating the selling of natural gas. This made it feasible for traders, for example, Enron to offer at energy at higher prices, which fundamentally expanded its revenue. After producers and local governments criticized the resultant price instability and asked for increased regulation. By 1992 Enron became the largest seller of natural gas in North America earning $122 million trading gas contracts, the second largest contributor to the company's net income. The November 1999 creation of the Enron Online trading website allowed the company to better manage its contracts trading business. Many of Enron executives were indicted of varies charges and some were later sentenced to