The Lesson from Enron Case - Moral and Managerial Responsibilities

The Enron scandal, give out in October 2001, Enron Top officials abused their privileges and power, manipulated information put their own interests above those of their employees and the public and failed to exercise proper oversight or shoulder responsibility for ethical failings which eventually led to the bankruptcy of an American energy company based in Houston, Texas, and the dissolution of Arthur Andersen, which was one of the five largest audit and accountancy partnerships in the world. In addition to being the largest bankruptcy reorganization in American history at that time, Enron undoubtedly is the biggest audit failure. It is one of companies which fell down too fast. This paper will analyze the reason for this event in detail including the management, conflict of interest and accounting fraud. Meanwhile, it will make analysis the moral responsibility From Individuals’ Angle and Corporation’s Angle. Therefore, this paper will prove that the bankruptcy of the Enron was because of managerial scandal for the self benefit than shareholder’s benefit of this company.