8/20/2019 Enron Scndal Reaction Paper

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Name: Danna Fhel P. Rellera Date: February 16, 2016Subject: MAS1Room: B!06Pro"e##or: Rebecca Ma$u%l%n&

ENRON SCNDAL REACTION PAPER

NR'N (a# once Amer%ca)# mo#t %nno*at%*e com+any, an (a# "amou#

throu&hout the bu#%ne## (orl "rom 1--0)# unt%l the "all o" 2001. A# "uture +ro"e##%onal

%nl%ne (%th bu#%ne##, )m ama/e at the #ame t%me %#a++o%nte (%th the mana&ement o" 

NR'N, a# (ell a# (%th the h%&her +o#%t%one em+loyee#, becau#e they co*ere %t#

banru+tcy a# a #teay com+any (%th &oo re*enue. t %# $u%te alarm%n&, #%nce a lot o" 

%t# em+loyee# an %n*e#tor# (ere a""ecte. For me, the Mana&ement %# not ju#t the one

to be blame, but al#o the o*ernment, #%nce they on)t ha*e that #tr%ct +ol%cy to +rotect

a# (ell a# to control e*ery ent%ty.

 A# rea an art%cle about the "all o" NR'N, th%n one o" the rea#on# o" the%r 

"all (a# the%r #trate&%e# an the%r (ay o" runn%n& the com+any. he &%*%n& o" bonu#e# to

tho#e (ho clo#e eal (a# catch%n& my attent%on, becau#e a# #tate %n the art%cle

3*eryone (a# %n a hurry to clo#e eal# 4&oo or ba5 becau#e r%&ht a"ter a clo#e eal,

they &ot the%r bonu#e# re&arle## o" the re#ult o" the eal, (h%ch mean# that e*eryone

(a# ju#t concern (%th the eal# to clo#e (%thout bother%n& %" %t coul &%*e #ome +ro"%t to

the com+any or not.

 Another +roblem that catche# my attent%on (a# the Mar7to7maret Account%n&,

(here the com+any (%ll u#e e#t%mat%on# o" "uture %ncome# (hen a lon&7term contract %#

#%&ne. h%# #%m+ly mean# that th%# e#t%mat%on o" "uture ca#h "lo( to the com+any (a#

alreay %nclue %n NR'N)# account%n& e*en thou&h th%# #a% money (a# not yet

rece%*e. he re#ult o" th%# tran#act%on ha# alreay &%*en the %n*e#tor# the m%#lea%n&

%n"ormat%on, (h%ch %# #u++o#ely alreay a *%olat%on.

(a# al#o alarme that the em+loyee# o" NR'N (a# com+et%n& (%th each

other, becau#e o" the com+any)# +ol%cy o" Per"ormance *aluat%on, (here the

em+loyee# are rate "rom 1 to 8, 1 be%n& the h%&he#t an e*eryt%me you (ere mare 8,

then %t mean# you ha*e to +ac your th%n becau#e you (%ll lo#e your job anyt%me

#oon. A# a com+any, em+loyee# #houl coo+erate (%th each other but %t turn# out that

they (ere com+et%n&. *eryone nee# to coo+erate to %m+ro*e the com+any not to

com+ete (%th each other ju#t to #tay %n the com+any.

here are a lot o" %#cre+anc%e# that NR'N ha# mae, (h%ch coul &%*e

e*eryone no(le&e on ho( to hanle "uture c%rcum#tance# to be encountere. A#

"uture accountant %t %# really %m+ortant to ma%nta%n our eth%cal conuct, an

+ro"e##%onal%#m. t %# a (arn%n& to tho#e (ho are alreay o%n& %t, "or them to #to+ an

o the r%&ht th%n %n#tea.