The Collapse of Enron
Who were the stakeholders involved in, or affected by, the collapse of Enron? How and what degree were they hurt or helped by the actions of Enron management?
Some of the stakeholders were directly responsible for Enron’s collapse. The deregulation of the 1980s presented an opportunity to become the “gas bank” reducing market risk. After this success Kenneth Lay, Jeffrey Skilling and Andrew Fallow became the market makers, buying and selling over 1,800 products. These top executives’ unethical practices and their internal control system manipulated the law to keep the company’s reputation but were responsible for the collapse.
After the collapse the management continued to lie to employees who invested in Enron stock; the rest of shareholders thought that the company was in great shape. The accounting records and balance sheets information were manipulated to reflect an image of success prior to the collapse to attract and mislead investors, the public and shareholders. Andersen’s accounting consultants responsible for Enron’s accounting records destroyed thousands of documents to manipulate such information.
This misleading information allowed Enron to acquire the loans necessary to expand its investment even when the company had a huge debt. After the collapse those banks were sued by shareholders and investors for the bad loans written up.
At the end of Enron’s collapse, the employees who invested in the company, investors and stockholders were the ones who suffered all losses. The executives received overpaid salary, bonuses and sold the stocks before the collapse, while the rest of the stakeholders were taken by surprise; they lost everything overnight.

Factors that most contributed to the collapse of Enron
Enron had internal and external factors that contributed to the collapse of the corporation. The corporate strategy to