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.

Chronology of the
ENRON Scandal

Sarbanes-Oxley Act

Global Ethic
and Economy

Global Economy –
Global Ethic?

• ENRON Company
• ENRON Scandal

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