Enron And The Enron Scandal

1387 Words Mar 17th, 2016 6 Pages
Enron, The Shadiest Guys In the Room When you ask young people about the Enron scandal today, most of them have not even heard of it. The fact of the matter is, it is very relevant to young professionals today. Enron is the most recent story of classic Wall Street greed and fraud. However it is still argued today by different stakeholders who are is responsible. This essay will take the viewpoint from multiple stakeholders to use the Enron Scandal as an example to further explain American corporate corruption. To analyze this scandal, we first need to know what happened. Enron opened as a natural gas company in Houston, Texas in 1985, founded by Ken Lay. It then formed into energy, commodities, and service company. Lay then hired Jeff Skilling as CEO; it was these two and a few other high-ranking executives that led to the failure of Enron. In short, Enron was losing money, but with the work of fancy accounting and taking advantage of free enterprise, reported huge false profits. This all came to a head in 2001 when Enron declared bankruptcy.
From the employees perspective. When looking at the employees’ point of view on the scandal, we first start with the executives. Ken Lay, chairman of Enron, Jeff Skilling, CEO, and Andy Fastow, CFO, were the masterminds behind the huge profits. Skilling was in charge of somewhat changing the face of Enron. He took the company from being solely a power company, to a commodity trading company. To quote Alternet, “They tried to trade…

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