Enron’s Poor Ethics lead to collapse of company

Enron was an American cooperation selling natural gas, commodities. They are once the largest company in this area. With over 20000 staff and over 101 billion of revenue in 2000, Enron was selected to “American Most Innovative Company” for six continuos years. However, due to the poor business ethics the company has, they got bankrupted in 2001 and they are the largest company that got bankrupted in the American stock history.

WIth the low transparency of Enron accounting department, Enron is able to hide the large borrowings and the lack of ability to earn money. By moving numbers around, they are able to claim that their company is in a good shape and earning big buckets. However, lies cannot be covered forever, the truth is shown at last. Bad company ethics undermine the collapse of the energy empire. The failure of Enron reminds us the importance of business ethics. As a huge cooperation such as Enron has business ethics, many other small companies and all the employees  are also affected. The greed of the management department destroy the whole Enron.