Enron Failure Essay Sample

Enron Failure Essay Sample

… scandals.” Enron filed for bankruptcy December 2, 2001 after revelations about years of inflated profits and hidden debt. In addition to Kenneth Lay, Enron’s collapse was due to the actions of Jeffrey Skilling, former chief financial officer Andrew Fastow and others in the financial group, and to the failure of Arthur Andersen LLP, Enron’s outside auditors, to blow any whistles. Watkins discovered the accounting problems while working for Fastow, who was indicted last month on 78 counts charging him with masterminding complex financial schemes that enriched him and helped doom the company. The element of personal greed and …

… that were once well-respected. Generally, these corporate scandals related to corporate loans to insiders as well as to insider trading and accounting scandals (i.e., over-inflating income in order to please Wall Street analysts and shareholders). Examples of companies involved in such scandals include Arthur Andersen LLP, Enron, Global Crossing, and WorldCom. Not only do these corporate scandals hurt a company’s profitability and reputation, but such scandals also de-moralize society and result in financial difficulties for employees who are laid off. In order to eliminate or minimize corporate scandals, there need to be refinements to existing …

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