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Case Study: Enron Scandal as an Example of an Ethical Dilemma in Business

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The Enron Case is one of the world largest shock in business term. Enron’s Stakeholders were the people who related with the company. In the case study, there are many Enron’s Stakeholders such as, all Enron’s employees, auditors, attorneys, all executives within company and others company that Enron’s dealings business with (investors). But the main Stakeholders in this case are Kenneth Lay (Enron Founder), Jeffrey Skilling (Enron Corp Chief Executive), and Andy Fastow (Enron CFO).

Firstly, this case was occurred because they fraud about their financial with help closure by the auditors. The company hide their true financial condition to get more money. Because they need more money to do forward the business. But in finally Enron’s collapse, the company, its employees have been caught called, “mega claims litigation” which defendants were Royal Bank of Scotland, Deutsche Bank, and Citigroup. People who worked for the company like executives or people who deal business with the company have been swept up in the investigations and prosecutions and many people were convicted, but some are not. The very sadness or big mistake of this case is all Enron’s employee. A thousand employees of the company are all unemployment. They have no clue with this because they are just employees who work and get paid (salary). Does not like executives or whoever get a huge money from fraud. Therefore, the sadness is thousand people were been in an unemployment status immediately. The main stakeholders like Kenneth Lay, Jeffrey Skilling, and Andy Fastow were deserved. But for Enron founder like Kenneth Lay he was died of heart failure after he was found guilty of multiple counts of conspiracy and fraud. Jeffrey Skilling were sentence for 24 years and 4 months is prison, but reduced to 14 years with $45 million in fines. Andrew Fastow were sentence for 6 years in prison with $23.8 million in cash and property. The people who are related with this fraud also sentence such as others executives.

Finally, everyone have their own ethic. For this case it is good case study of ethical dilemma which use your personal decision from right or wrong. Andrew Fastow is the person who good to be a case study for others. He said, “I knew it was wrong,” “I knew that what I was doing was misleading. But I didn’t think it was illegal. I thought: That’s how the game is played.” From his words you will know how guilty he feel right now. He knew that it was wrong, but he still doing it because he was think that it was illegal. If he think about this enough and to make it right maybe, he will have a good times with family and happy in his life without this guilty.

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Case Study: Enron Scandal as an Example of an Ethical Dilemma in Business. (2022, August 30). GradesFixer. Retrieved December 7, 2022, from
“Case Study: Enron Scandal as an Example of an Ethical Dilemma in Business.” GradesFixer, 30 Aug. 2022,
Case Study: Enron Scandal as an Example of an Ethical Dilemma in Business. [online]. Available at: <> [Accessed 7 Dec. 2022].
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