preview

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

Decent Essays
Enron was once one of the world's leading electricity, natural gas, pulp, paper and communications companies. However, in December 2, 2001, Enron suddenly filed for bankruptcy. During the ten years before Enron¡¦s went bankrupt, Enron¡¦s management had started transferring Enron¡¦s funding to personal accounts and made fake balance sheets, which provided investors information about how this company goes. (Gibney, 2005) These illegal actions, performed by certain individuals, finally led Enron to go bankrupt. These people¡¦s unethical behaviors such as CEO (Chief Executive Officer) of Enron, auditors and journalists caused Enron to go bankrupt, and therefore are responsible for Enron¡¦s bankruptcy. First of all, the hypocrisy and…show more content…
(Madrick, 2003, p. 5) If Beth McLean published this story before the bankruptcy, investors may have gotten some warming and they would not have bought the stocks. Unfortunately, because of journalists bribes, investors did not realize the actual situation of Enron until Enron went bankrupt. Furthermore, journalists kept reporting some positive news about Enron without checking the dependability. Jeffrey Madrick
Get Access