It is observed by researches and analysts that unethical business and accounting decision has took place in Enron Company especially CFO Jeffrey Skilling and CEO Ken Lay who played major roles in this scandal. Enron involved in business risks like fraud and the company failure happened when it entered into conservative transactions. The problem Enron faced was that they treated their loans as revenues yet it is not shown in the balance sheet, in other words, Enron did not treat them as current liabilities such as accounts payable so they did not show their creditors as liabilities, which had mislead their customers and investors. Because the company had taken the help from others in hiding a large amount of company debt (partnerships with various enterprises), it shows that unethical actions had been carry out. For example, Enron did …show more content…
Both individuals and organizations or firms should demonstrate that they have already eliminated all off-books accounts which will distort the public’s understanding of their firm’s progress or financial background and government should also make the firms to pledge that they will not suspend the company’s code of ethics, or at least they must provide a transparent report to the public. To prevent the comeback of Enron’s tragedy, supervision of managers and executives are needed because they might exercise their own business judgments about their best interest for an organization or themselves. From my point of view, most of the problems faced by Enron derive from the immoral and unethical actions taken on by the executives and directors who wanted to achieve their personal goal and profits. Their greediness have changed the lives of their employees and everyone in the states, perhaps it also forced everyone especially entrepreneurs to look at themselves, learn the consequences of reckless actions that may drive themselves into