Run Enron

Enron was a well-known company in the 1900s. In fact, it was even named as “America’s Most Innovative Company” numerous times back then. However, due to a certain scandal, the company just fell apart, bringing majority of its stakeholders down with them.

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Enron’s downfall was mostly due to the greed and corruption of its higher ups. All they thought of was to increase their money without thinking of what may happen to the future of the company. They altered their financial statements making others believe that they were actually still performing well, but in fact, their debts were already exceeding their assets which wasn’t really good. Their devious plan actually worked but it didn’t last long. So when the time came when they got busted, numerous stakeholders got affected including their employees and other large companies.

Their desire to attain more money through defrauding left a negative impact to their stakeholders and the company itself and sadly, this craving still exists in most businesses today. To solve this problem, we as future business leaders, should not focus too much on profit. We should learn how to manage our businesses well and remember that there are other stakeholders involved whenever we make certain decisions. So whenever we plan on making business decisions, we also have to think about the other parties involved.