Before Enron's collapse, Enron was one of the world's largest energy, oil, gas and mail companies. It is true that Enron was one of the most imaginative American organizations for the previous six consecutive years. Until 2001, according to an “Investopedia article”, it guaranteed an income of around 101 billion dollars. The crazy thing to think about is that the Enron Company filed for bankruptcy on December 2, 2001. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an Original Essay In the minds of the general population, the majority believes that Enron's collapse was due to moral issues. Unfortunately, officials exploited their representatives' trust in their administration to become pawns in the scheme. The most serious problem in Enron's collapse is the lies and false accounting practices they allegedly used to win over more investors. Basically Enron fooled the entire world, hiding their true numbers that weren't always good, putting them in their financial statements, but in places no one would check. Which of course would lead to the insane amounts of money they have raised from investors, in just 3 years they have increased their stock price by over 300%. Now, there were some moral problems within Enron that hurt and influenced the workers to fall and become part of the scandal. The moral issue was that Enron urged their representatives to invest resources in the company when the CFO realized that their organization was not in a position to succeed and their shares were not near the price they wanted. Furthermore, numerous faulty accounting systems that were leading to collapse were made public. There were many problems that helped the company collapse. Among all, there is the lack of truthfulness from the top management regarding the state the company was in, the senior executives really thought that Enron had to be the best at everything it did and that the company needed to protect your reputation. There is no evidence that Enron's CEO (Jeffrey Keith Skilling) told workers that the stock would most likely rise and that he hid that he was selling the stock. Only the investigation into Enron's bankruptcy allowed shareholders to notice the sell-off of the CEO's shares. Also the conflict of interest, a man named Arthur Andersen, who acted in two roles: that of auditor but also that of consultant to Enron. Leading managers to manipulate ways to move their debts out of the company and not show up on the balance sheet. Therefore the reported revenues and profits were completely wiped out, leaving the world blind to what to do. Obviously hitting Enron's stakeholders the most, who also had no idea. To gain the trust of investors, they created a constant profit situation in the organization, Enron stock traders were pushed to predict high future cash flows and a low discount rate on the long-term contract with Enron. Please note: this is just a sample. Get a custom paper from our expert writers now. Get a Custom Essay To conclude, the collapse of Enron affected several parties including shareholders, employees, customers and suppliers, communities, and even the United States as a whole. Thousands of employees have lost their jobs and pension savings. Shareholders also lost their investments as Enron's stock fell rapidly. The sudden fall of Enron was a shock to the public as it not only affected the lives of the parties..