LYCOS RETRIEVER 
Enron
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If Enron were a morality play it would be called Conflict of Interest. Conflicts of interest were forbidden in the contracts signed by Enron executives—were even grounds for termination. Yet they were the chief motivational tool at Enron. Let's start inside the company and work outwards, seeking, like Diogenes, to find an honest man or woman. What is a conflict of interest? Consider this example from the Enron petri dish.
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Among the lessons he highlighted for other managers still shaken by the Enron debacle were the importance of humility and accurate self-assessment. The Enron executives were amateurs trying to play a professional sport, he said. They used "turbo incentives" but turbo incentives ... require turbo controls. The innovation they sparked at the beginning was real, but it flew out of their hands. As amateurs, Salter said, "they unknowingly released forces and became subject to forces they could not understand."
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Enron had a $3 billion investment in the Dabhol power plant, near Bombay on India's west coast. The project began in 1992, and the liquefied natural gas- powered plant was supposed to supply energy- hungry India with about one-fifth of its energy needs by 1997. It was one of Enron's largest development projects ever (and the single largest direct foreign investment in India's history). The company owned 65 percent of Dabhol; the other partners were Bechtel, General Electric and State Electricity Board.
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Enron has provided risk management products and financing for the pulp, paper and wood products industry since 1997. To date, Enron has completed financial transactions totaling more than 17 million tons of pulp and paper products with a notional value exceeding $8 billion. Producers and consumers have used these products to hedge the price risk associated with their raw materials and finished products.
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HOUSTON, May 9 /PRNewswire/ -- Enron Corp. announced today that it has reached an agreement with Credit Suisse Securities (USA) LLC, formerly known as Credit Suisse First Boston LLC ("CSFB"), to settle MegaClaims litigation in the Enron bankruptcy case. Pursuant to the terms of the settlement, CSFB will pay Enron $90 million. The settlement further provides that approximately $337 million in claims against the Enron estate held by CSFB will be subordinated and receive no distribution from the Enron estate and approximately $92 million in CSFB claims will be allowed. The settlement reflects that CSFB was involved in fewer transactions with Enron than certain of the other MegaClaim defendants. CSFB did not admit liability or wrongdoing and both parties agreed to settle the litigation to avoid the costs and uncertainties of further proceedings.
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Enron filed for bankruptcy on December 2, 2001. In addition, the scandal caused the dissolution of Arthur Andersen, which at the time was one of the world's top accounting firms. Enron ... withdrew a naming rights deal with the Houston Astros Major League Baseball club to have its name associated with their new stadium, which was formerly known as Enron Field.
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