Enron Scandal: Who Are Responsible for Enron¡¦S Bankruptcy

Enron was once one of the worlds leading electricity, natural gas, pulp, paper and communications companies. However, in December 2, 2001, Enron suddenly fi direct for bankruptcy. During the ten years before Enron¡¦s went bankrupt, Enron¡¦s management had started transferring Enron¡¦s financial backing to personal accounts and made fake balance sheets, which provided investors information about(predicate) how this company goes. (Gibney, 2005) These illegal actions, performed by certain individuals, fin eithery led Enron to go bankrupt. These people¡¦s unethical airs such as chief operating officer (Chief Executive Officer) of Enron, auditors and journalists caused Enron to go bankrupt, and therefore are accountable for Enron¡¦s bankruptcy. First of all, the hypocrisy and dishonorable actions of Kennie Lay, the former CEO of Enron, led to Enron¡¦s bankruptcy. In August of 2000, when Enron¡¦s straining price reached $90, investors were told to buy the stock because Kennie Lay informed them that it would spring up until more than $130. However, at this time, Kennie Lay started selling his stocks because he knew Enron¡¦s financial problems and predicted the stock price would drop off. (Sherman, 2002, p. 22-28) As an Enron executive, all of his concern should be focus on Enron¡¦s profits, moreover all he cared about was his property.

When Kennie Lay noticed Enron¡¦s financial problem, he did not attempt to fix it, still made effort to maintain his own benefit and disregard the whole company¡¦s and investors¡¦ loss. His selfish and unethical behavior not only deceived the investors but excessively finally resulted in Enron¡¦s bankruptcy. Therefore, Kennie Lay is one of the causes of Enron¡¦s bankruptcy. In addition, auditors also played an important role in Enron¡¦s downfall. Auditors who were absorbed of their duties caused Enron¡¦s bankruptcy. Jeffrey Madrick, an editor of Challenge Magazine and a contribute columnist to The New York Times, reported, ¡§most of the earning in three of the culture five years were bogus¡Kapparently,... If you want to get a full essay, order it on our website: Orderessay

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