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The Sugar Syndrome: Enron and the Effects of Very Expensive Poison

Spencer Powell

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Published in Lucy Prebble Plays 1: The Sugar Syndrome Enron The Effect A Very Expensive Poison (Contemporary Dramatists)

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Enron was once one of the world's largest and most successful companies. It was a global energy giant with operations in over 40 countries. But in 2001, Enron collapsed in a spectacular fashion, leaving behind billions of dollars in debt and thousands of employees out of work. What went wrong?

Lucy Prebble Plays 1: The Sugar Syndrome; Enron; The Effect; A Very Expensive Poison (Contemporary Dramatists)

by Lucy Prebble

4.9 out of 5

Language	:	English
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Print length	:	385 pages

The answer lies in a complex web of factors, including accounting fraud, corporate greed, and unchecked corporate power. Enron's accounting practices were designed to hide the company's true financial condition. The company used special purpose entities (SPEs) to keep debt off its balance sheet and inflate its earnings. Enron also engaged in a variety of other accounting tricks to create the illusion of profitability.

In addition to its accounting fraud, Enron was also plagued by corporate greed. The company's executives were paid exorbitant salaries and bonuses, even as the company was on the brink of collapse. They also used their positions to enrich themselves through insider trading and other illegal activities.

Enron's corporate greed and accounting fraud were made possible by a lack of regulation. The company was able to operate with impunity because it had powerful friends in government. Enron's executives made large campaign contributions to politicians of both parties, and they used their influence to weaken regulations that would have prevented their fraud.

The collapse of Enron was a watershed moment in American corporate history. It showed that even the largest and most successful companies can be brought down by greed and fraud. It also highlighted the importance of strong regulation and the need for government to hold corporations accountable for their actions.

The Sugar Syndrome is a fascinating look at the rise and fall of Enron. The article provides a detailed account of the events leading up to Enron's collapse, and explores the devastating consequences of the company's accounting fraud and corporate greed. The article also provides a cautionary tale about the dangers of unchecked corporate power and the importance of strong regulation.

The Rise of Enron

Enron was founded in 1985 by Kenneth Lay and Jeffrey Skilling. The company initially focused on the natural gas pipeline business, but it soon expanded into other areas, including energy trading, power generation, and broadband telecommunications.

Enron grew rapidly in the 1990s, thanks in part to the deregulation of the energy industry. The company's stock price soared, and it became one of the most valuable companies in the world.

Enron's success was due in part to its innovative business model. The company was a pioneer in the use of derivatives, which allowed it to bet on the future price of energy.

Enron also benefited from its close relationships with politicians. The company made large campaign contributions to both parties, and it had powerful friends in government.

The Fall of Enron

Enron's collapse began in 2001, when the company disclosed that it had been using SPEs to hide debt and inflate its earnings.

The disclosure of Enron's accounting fraud led to a loss of confidence in the company. The company's stock price plummeted, and it was eventually forced to file for bankruptcy.

The collapse of Enron was a major scandal that shook the business world. It led to the passage of the Sarbanes-Oxley Act, which was designed to strengthen corporate governance and prevent future accounting scandals.

The Lessons of Enron

The collapse of Enron provides a number of lessons for businesses and regulators. First, it is important to have strong accounting standards and to ensure that companies are following those standards.

Second, it is important to have strong regulation of the financial industry. Regulators need to be able to detect and prevent accounting fraud and other illegal activities.

Third, it is important to hold corporations accountable for their actions. Corporations should be punished for accounting fraud and other illegal activities, and their executives should be held personally liable.

The collapse of Enron was a tragedy for the company's employees, investors, and creditors. But it also provides a valuable lesson about the dangers of corporate greed and the importance of strong regulation.

Lucy Prebble Plays 1: The Sugar Syndrome; Enron; The Effect; A Very Expensive Poison (Contemporary Dramatists)

by Lucy Prebble

4.9 out of 5