January 2012
Beginner to intermediate
192 pages
6h 29m
English
Content preview from Case Studies in Business Ethics and Corporate Governance
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54 Case Studies in Business Ethics and Corporate Governance
By 2001, all the industries Enron was into faced economic crisis, especially bubble burst in telecom
and dotcom industries had a great infl uence on Enron.
Maharashtra State Electricity Board, the sole consumer of Enron’s power in India, ended its con-
tract with Enron, due to which Enron lost almost US$1 billion.
In August 2001, Jeff Skilling, the CEO of Enron, resigned citing personal reasons which brought
back Kenneth Lay as the top executive in Enron.
On 15 August 2001, Lay received a letter from the Vice-President of Corporate Development ex-
posing some of its fi nancial problems.
Starting October 2001, Enron’s stock started falling sharply and the stock hit 7 year low at US$ ...
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