Question

Stakeholder involved in a scandal in Enron Company.

Answer 1

Stakeholders involved in Enron Scandal

Jeffrey Skilling along with a few executives was the main stakeholder involved in the scandal who used accounting loopholes and poor financial reporting. Chief Financial Officer Andrew Fastow was responsible for high risk accounting practices. Enron Auditor, Arthur Anderson was pressured to ignore the issues.

Stakeholders affected by the scandal include employees of Enron, executive management of Enron, third parties companies affiliated with the company, stockholders and the whole economy. The employees and top executives lost their jobs, third party accounting company Arthur Anderson was dissoluted, stockholders lost most of the value of their shares and the whole economy was badly affected.