Enron Case - is checking financial statements, then have...

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Lauren Brockmiller Bus101 Dr. Barr 4/19/2011 This Enron case is a case about misleading your stakeholders. Enron messed with their original financial statements to make people thing they were doing better than they really were. Owners and employees are the main stakeholders in this case. Owners want to make money for themselves and employees want job security and to know that they will be successful and taken care of after they retire. The issue in this case is that there were false financial reports made available to the public. These made everyone believe that Enron was doing better than they actually were. The factors that most attributed to the collapse of Enron was the fact that they did nothing to fix the problem, but continued with the problem. The best way to keep these events from occurring
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Unformatted text preview: is checking financial statements, then have someone else check it to make sure everything is going okay. In the long run, every stakeholder was hurt by the decisions of Enron. Because the company completely collapsed, so there are just no stakeholders anymore. Tort laws were what was violated in this case, because it was basically civil cases against people for doing the “wrong thing.” Friedman would have said “go with it!” He would have said this because capitalism is playing it’s role and getting rid of the weaker companies. Freeman on the other hand would have said that this didn’t help any stakeholders at all and would therefore not have approved....
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This note was uploaded on 08/29/2011 for the course BUS 101 taught by Professor Rollins during the Spring '08 term at Miami University.

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Enron Case - is checking financial statements, then have...

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