The Collapse of Enron 1. Who were the key stakeholders involved in, or affected by, the collapse of Enron? How and to what degree were they hurt or helped by the actions of Enron management? In what ways did stockholders initially benefit from Enron’s actions? In what ways were stockholders ultimately harmed by the actions of Enron’s management? 2. Looking at all the evidence, what do you believe were the internal and external causes of Enron’s collapse? What factor or factors most contributed to the collapse? 3. Insider trading occurs when a person uses confidential (“inside”) information about a company to buy or sell the company’s stock for a gain. What evidence can you find in the case of insider trading? 4. Do you see any actions on the part of Enron management that ought to be considered socially irresponsible? 5. Was Sherron Watkins justified in taking the actions she did? Why or why not? Do you think there is anything more that Watkins should or could have done to blow the
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