Paper 1 Topic

Enron should have been more focused on its stakeholders to benefit the long term of the company instead of being so short sighted. If Enron had done this, would they still exist today?

Stakeholder ethics seems to be overall more long-term focused, whereas shareholder ethics, which were used by Enron, are focused on the short-term, quick success of the company. At Enron, the management team was focused solely on increasing stock price and bottom line numbers each quarter. To accomplish this, they falsified their accounting records and bribed Andersen accountants to validate these counterfeit records. Enron was not focused on the long term well being of their company and stakeholders. Ethically, Enron should have cared less about their personal monetary benefits and more about their business and the American economy as a whole.

1 thought on “Paper 1 Topic

  1. Ok, good idea. Some further ideas. 1) Why was Enron so short-sighted? 2) Would Milton (or David Jensen) say that shareholder focus means a firm must be so short-term focused? 3) How can a firm or an executive be less short-term focused?

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