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Complete 2 page APA formatted essay: Enron: The Smartest Guys in the Room.Therefore, if he intended to safeguard the stakeholders’ interests, he should have been truthful on the actual Enron’s fin
Complete 2 page APA formatted essay: Enron: The Smartest Guys in the Room.
Therefore, if he intended to safeguard the stakeholders’ interests, he should have been truthful on the actual Enron’s financial situation. The shareholders needed the definite reflection of the company performance and maybe they would have saved the firm from bankruptcy. Indeed sharing the right information would have informed them on the right course of action in relation to their shareholding. Nevertheless, by wrongfully manipulating the company’s financial statements, he duped stakeholders into buying more of the company’s stocks. Arguably, a clear presentation of Enron losses in the statements would have affected the stakeholders’ investment decisions towards the company. Additionally, apart from the shareholders, Skilling had other parties to protect. He should have protected the company’s consumers from the harm caused by fluctuation of energy prices. But Skilling increased the energy prices without considering the implication it had on the consumers. For instance, he created an artificial shortage of energy in California, which forced the energy prices to shoot nine times the normal price. Such actions showed that Skilling is an individualistic person who works neither for the interests of the consumers nor that of the shareholders. The company’s employees should also have been considered in Skilling’s actions. But he chose to trick them just as he did to the shareholders. .He enticed them to invest all their pension money into the company’s shares.
