Consequences of the ENRON Scandal


Enron stands for the greatest company scandal in the history of the US economy and has become a symbol of corruption for the whole Western economic system.
 

• 4500 employees lost their jobs.
 
• Investors lost some 60 billion dollars within a few days; for many it meant losing their old-age security.
 
• The pension fund for the company's employees was obliterated.
 
• Citizen’s trust in the American economic system was destroyed.
 
• Losses on the financial market amounted to the worst stock value loss in peaceful times.
 
• Banks were suspected of collusion.
 
• The auditing firm Arthur Anderson lost its accreditation.
 
• The rules for company financial reporting were drastically sharpened: Sarbanes-Oxley Act (2002).
 
• The close ties of the company's founder, Kenneth Lay, to US President George W. Bush – Lay was an important financial supporter of Bush – came under sharp criticism.
 

pdf
Chronology of the
ENRON Scandal

pdf
Sarbanes-Oxley Act

Global Ethic
and Economy


Global Economy –
Global Ethic?


SCANDALS
• ENRON Company
• ENRON Scandal
• ENRON
Consequences

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