Enron Corporation (former NYSE ticker symbol ENE)

Enron through stock options According to the law entering into the stock option plans requires a closely scrutiny of the actual worthy of the organization by the SEC such should entail auditing practices rather than just provision of the financial statements of the corporation (Joint Committee on Taxation 2003 . This was however not the case for Enron . It has been alleged that Enron had 96 million shares in the stock option plans by the end of 2000

Following a rise in its share price in 2001 to 83 .13 , the company d

br for compensation . The other irregularity is that Enron engaged in illegal insider trading practices . True to the letter , of the executive members of Enron , Lay owned 659 million and Skilling 174 million of the director 's stock ownership (Joint Committee on Taxation , 2003 . Just to be appreciated is the fact that Skilling has been established as the driving force to the unethical practices of Enron and Lay was the chairman of the corporation , an element indicative of illegal insider trading practices

Whether or not Enron was liable for the actions of its agents and employees

The function of a corporation as a business entity is to promote transparency and accountability among its employees and agent . This is sort by the corporations to protect its reputation in the public However , this was not the case in Enron . The corporation lack ethical corporate culture for guiding the behaviors of its employees and agents This can be evident from the move by Skilling to ask "What earnings do you need to keep our stock price up " during budget meeting and such could be implemented regardless of its feasibility (Human Rights Watch 1999 . Therefore , Enron was liable for the actions of its agents and employees

References

Benston , G , et al (2003 . Following...