Enron Stakeholders

Enron stakeholders assign Enron to many people's dreams, but it is also a nightmare awaiting more things to happen. From the management point of view I will look at the collapse of Enron. Three examples of Enron 's low performance I want to study are the conflicts of interest between Valhalla' s event, California 's power trading, and Andy Fastow and his SPE (Special Purpose Entity). These are just a few examples of the failure of "the world leading company." In 1985, Houston Gas merged with InterNorth in Nebraska Omaha, founded Enron, appointed Ken Lay as CEO.

Enron's ethical responsibility to stakeholders is a large company, and Enron is responsible for all stakeholders, including shareholders, governments, suppliers, creditors, debtors and the community. Enron is a large company that will influence these stakeholders and commit to ethical responsibility of business operations while observing ethical standards. The company is responsible to shareholders as they invest in the company to gain wealth. The government also relies on companies to collect taxes, but the creditors want payment after delivery of services and goods.

As mentioned earlier, Enron is responsible for stakeholders including the community. It is expected that Enron will create wealth for shareholders, pay wages to employees, pay compensation to creditors, pay taxes to the government, and support local communities. After failure due to insufficient management, it failed all these responsibilities. Ethics is willing to give the public a power by assuring that the organization is being operated in good faith and creating wealth (Cruver 66-73)

Along with the collapse of Enron many stakeholders suffered as a result of the company making a wrong decision. For example, employee's retirement savings are gone and thousands of jobs are lost. In the case of Enron, not only did the employee suffer loss but also the US economy was affected. "What happened to Enron in" The collapse of Enron brought about a $ 35 billion loss in the US economy "(page 194). Through various accounting methods related to partnerships, Enron exaggerated their interests and reduced debt. They misunderstood employees, investors, and the public about the company's financial situation. In fact, according to this chapter, employees or stakeholders have the right to know the real financial situation of their company. However, in this case, Enron could not tell the truth about its financial performance.