StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

Paper Entrepreneurialism and Enrons Collapse - Essay Example

Cite this document
Summary
Enron has been one of the most famous cases of fraud and deceit over the years, and this organization has been used as a case to understand the problems of finances and corporate governance in a number of scenarios. Robert Reich in his famous article, Paper Entrepreneurialism,…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER91.7% of users find it useful
Paper Entrepreneurialism and Enrons Collapse
Read Text Preview

Extract of sample "Paper Entrepreneurialism and Enrons Collapse"

Introduction to the Case Enron has been one of the most famous cases of fraud and deceit over the years, and this organization has been used as a case to understand the problems of finances and corporate governance in a number of scenarios. Robert Reich in his famous article, Paper Entrepreneurialism, explains about the ways and means by which many firms in the United States have shown earnings and healthy growth when none of it exists. Malcolm Salter, in one of the recent books, explains about the culture of defeat that exists and how management finds ways to innovate and show steady profits.

A critical analysis of each has been conducted in this assignment to explain how cases like Enron exist and how lay people do not seem to realize the issues in such companies before hand. Paper EntrepreneurialismReich argues in his article, Paper Entrepreneurialism that accountants and financial experts are particularly trained to manipulate books and numbers. As a result, they have a number of innovative schemes through which an organization can stand to gain through various means. Such paper entrepreneurs manage finances through the usage of paperwork, like establishing holding companies and joint ventures, conducting spinoffs or divestitures, developing mutual funds or conducting exercises that hide realities of the organization under the paperwork and the numbers.

Reich suggests that there are other types of entrepreneurs as well which he terms as product entrepreneurs. He believes that these entrepreneurs are developers of products and services that people may want or need. They are innovators of products, and sell such to the consumers. He states that economy has a need for both of them but because paper entrepreneurialism is on the rise, it is expected that organizations will manage to cook up financial gains when competition has become increasingly strong, particularly due to globalization. (Reich)Culture of DeceitSalter states that Enron is a classic example of deceit and corruption where most of the stakeholders focused on personal gains rather than the organizational gains because of which the shareholders suffered.

The problems were deep rooted in ethical and administrative failures, along with lack of corporate governance. As a result, when financial incentives are part of the executives and the board, ethical discipline will definitely be lacking within an organization which was the case in Enron. In such a scenario, Salter explains that corporate governance failure was the key reason why Enron failed and this is the primary way an organization can avoid such a scenario. (Salter)Conclusion The disquieting factor is that cases like Enron have existed and continue to exist, while consumers fail to notice the failures of the organization when they see the profits and the bottom-line.

The ideology in all cases should to be actually evaluate the company on various qualitative as well as quantitative factors in order to truly understand an organization for its worth. This is the key through which shareholders can benefit if they continue to evaluate the organization in various grounds. BibliographyReich, Robert. "Paper Entrepreneurialism." New York Times 23 May 1980.Salter, Malcolm. Innovation Corrupted: The Origins and Legacy of Enrons Collapse. Harvard University Press, 2008.

Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Paper Entrepreneurialism and Enrons Collapse Essay”, n.d.)
Paper Entrepreneurialism and Enrons Collapse Essay. Retrieved from https://studentshare.org/business/1596187-paper-entrepreneurialism-and-enrons-collapse
(Paper Entrepreneurialism and Enrons Collapse Essay)
Paper Entrepreneurialism and Enrons Collapse Essay. https://studentshare.org/business/1596187-paper-entrepreneurialism-and-enrons-collapse.
“Paper Entrepreneurialism and Enrons Collapse Essay”, n.d. https://studentshare.org/business/1596187-paper-entrepreneurialism-and-enrons-collapse.
  • Cited: 0 times

CHECK THESE SAMPLES OF Paper Entrepreneurialism and Enrons Collapse

The Rise & Fall of a Billion-Dollar Company Enron

It employed more than 20,000 employees to deal with their electricity natural gas, communication, pulp and paper company businesses that generated revenue around 101 billion USD (Fusaro & Miller, 2002).... The Rise & Fall of a Billion Dollar Company Enron No: University: Date: The Rise & Fall of a Billion Dollar Company Enron Company Profile The journey of Enron started way back to 1985 when it acquired the assets of Houston Natural Gas and Omaha based at Inter North....
8 Pages (2000 words) Term Paper

Analysis of Enron Bankruptcy

Enron paper: First Name, Last Affiliation Tutor Date Enron paper Introduction Enron was originally an American natural gas pipeline firm, which grew into a giant marketing and communication broker.... Founded in Houston Texas in 1985, it had an approximate of 20,000 employees, and was a leading company in the production of electricity, natural gas, communications, paper and pulp, power plants and wastewater management....
6 Pages (1500 words) Research Paper

Business Failure: Enron

It has been observed that the management of Enron was unable to take relevant measures regarding the future uncertainty of the business which lead toward collapse of the company (The University of Chicago Booth School of Business, 2002).... Lack of efficient leader in an organization can lead to collapse of entire business....
3 Pages (750 words) Research Paper

ENRON Ethical Breach

The company, which was believed to be the “most innovative company” of the United States and one of the world's leading electricity, natural gas, communications, pulp and paper company, was formed by merging Houston Natural Gas and InterNorth.... Running Head: Enron Ethical Breach Enron Ethical Breach Enron Ethical Breach Enron Corporation was a Houston-based American energy and services company established by Kenneth Lay in 1985....
4 Pages (1000 words) Research Paper

Case study: Enron

hellip; Enron's expansion and eventual collapse was therefore initiated by its management and facilitated by its recruitment strategy and selected employees.... Summary of the case The case outlines history of Enron that begun as a small organization and abruptly expanded before its collapse in the year 2001.... Conclusion Enron's expansion and eventual collapse was therefore initiated by its management and facilitated by its recruitment strategy and selected employees....
2 Pages (500 words) Term Paper

Enron and Arthur Anderson

It is this complicated plan that causes its collapse.... Lay combined Houston Natural Gas, his organization, with InterNorth, a company situated in Nebraska, to create Enron.... Kenneth Lay was the chief executive officer of the organization.... Under Kenneth Lay's management, Enron engaged… Ronald Reagan's presidency saw the 1980s experience a tremendous deregulation of energy markets....
4 Pages (1000 words) Research Paper

Causes of building collapes

This raises the questions; why today, when technology is so advanced, do buildings collapse?... Can man totally deter Faulty Design Faulty Design Introduction collapse of a building can be a very catastrophic disaster that can cause immense loss of life and property.... This raises the questions; why today, when technology is so advanced, do buildings collapse?... Can man totally deter buildings' collapse?... Three of the main causes of buildings' collapse are; faulty design of structures by incompetent engineers, overloading of structures, and natural disasters....
1 Pages (250 words) Term Paper

Harbor Cay Condominium Collapse

In the report “Harbor Cay Condominium collapse” the author describes the Harbour Cay Condominium, which collapsed while under construction.... The upper floor fell on the lower ones leading to comprehensive total building collapse (Lew, Center for Building Technology, & United States, 1982)....
11 Pages (2750 words) Research Paper
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us