Enron Project Chris Deligiannis, Conal O'Kane

                                                         

Enron Impact

Well, the players in the Enron scandal acted unethically. One of the actions Enron's upper management committed was to be the largest corporate donor to the Bush campaign. Their motivation was to establish connections and to help with the deregulation of the energy industry. Besides this, they donated to many politicians and Congressmen which was unethical because no one would go against Enron since they were receiving money. The banks were also trouble since they spent their time manipulating earnings and falsifying bank statements for Enron. Also, the Arthur Anderson accounting firm and Enrons internal accounting department would falsify accounts and acted like they were generating revenue even though they were not. They basically could say they were making sales even though they weren't.  Basically, Enron acted like they were doing well and making large profits even though they were billions of dollars in debt. In their company briefing, Enron executives would state that they had a well-financed and put together company even though that wasn't the case. A major red flag though that should have been noticed was the fact that Enron didn't need to show debt on their balance sheet. This was a problem since all other successful and trustworthy companies would disclose this information. Enron for many years though despite this information was considered by analysts as the most reliable company in America. Due to this many people bought the stock and almost all the employees had their money in Enron stock. They saw it a good option since the stock was going up by staggering rates for many years. The problem though was when people noticed the deception of Enron the upper management or guys such as Ken Lay, and Skilling directed the sell-off of millions of sell orders through their brokerage firm while they made it so the employees couldn't sell. The Senior Executive Officers were unloading their shares through traders without their employees even knowing. Overall Enron fell because it focused on the appearance of value rather than creating real value.