The actual strategy
The actual strategy of Enron was creation of financially prosperous image via artificial increase in profits.
How? • Mark-to-Market accounting
• Registration of legal entities whose initial purpose was to accumulate factual Enron’s expenses
• Implicit collusion with audit and analysts companies (e.g. Arthur Andersen) to provide
Topic 9. CSR in Finance
Top-managers of Enron
Ken Lay The first CEO and Chairman of Board of Directors. He knew everything, owned large amount of stock, and continuously created strong good public image of Enron in all his public speeches. Jeff Skilling The COO who introduced mark-to-market accounting. Large shareholder, earned about 200 millions after dumping his stocks. Andy Fastow The CFO who manipulated with subsidiaries and financial reporting. Channeled some profits to his secret private account.
Remember them!
Jeff Skilling and Mark-to-Market
The fragment of Enron: The Smartest Guys in the Room (2005)
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