Key Stakeholders Affected By The Collapse Of Enron

1065 WordsDec 4, 20145 Pages
List 5 key stakeholders affected by the collapse of Enron? Explain briefly how each stakeholder was affected. a. Stockholders at first reaped tremendous gains from their investments in Enron stock, because the company’s value rose a lot of quicker than market averages throughout the late Nineteen Nineties. In 2001, because the stock value folded, investors lost $70 billion in value. Each individual and institutional shareholders were hurt. Significantly blasted were Enron workers whose 401(k) retirement plans were heavily endowed in their company’s stock. Even shareholders who failed to own any Enron stock were hurt, as stock costs fell across the board within the wake of the scandal as investors doubted the integrity of the many companies’ monetary reports. b. Many staff lost their jobs as a results of Enron’s failure; four thousand were set off directly, with additional to follow. Several staff saw the worth of their retirement accounts collapse. c. The full impact of Enron’s collapse on customers isn 't explored within the case. Students might speculate that some customers that had signed semi-permanent contracts with Enron for the delivery of bound commodities were left while not a reliable supply. d. The full impact of Enron’s collapse on suppliers isn 't explored within the case. Students could speculate that some companies that had signed long-run contracts with Enron for the delivery of bound commodities were left while not a reliable distributor/customer. e.

More about Key Stakeholders Affected By The Collapse Of Enron

Open Document