CFO Andrew Fastow created financial partnership to hide Enron debt, from which he allegedly collected $30 million in management fees. That brings in the ethical issue of conflicts of interest, one of key problems at Enron. Being said that, the corporation owes all stakeholders the obligations to meet their interests. While employees want secure jobs with high earnings ustomers want quality products with cheap prices, which may eventually result in the company and employees’ low income. All stakeholders have their own self-interests. The company’s stakeholders include primary groups of customers, employees, shareholders, owners, suppliers, etc. Stakeholders and Conflicts of Interest Modern corporations like Enron usually have multiple stakeholders with often conflicting interests and expectations. Enron filed for bankruptcy on December 2, 2001. The Smartest Guys In The RoomĪs the scandal was revealed, Enron shares dropped from over $90 to less than $. The executives and insiders at Enron knew about the offshore accounts that were hiding losses for the company however, the investors knew nothing of this. This practice drove up their stock price to new levels, at which point the executives began to work on insider information and trade millions of dollars worth of Enron stocks.
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