On the Side of the Angels “We’re on the side of angels. We’re taking on the entrenched monopolies. In every business we’ve been in, we’re the good guys.” Jeffrey Skilling, President and CEO, Enron Corporation

Abstract

This case provides students an overview of the demise of the Enron Corporation, one of the precipitating events for a era of regulation. In the 1990's, Enron was the subject of many articles and studies touting its quick rise as a firm successfully transitioning from a hard assets firm to a financial services powerhouse, a paradigm of the new economy. The demise of Enron was even swifter, accomplished in a matter of months in the latter part of 2001. A brief overview of Enron's rise is given in the case, as well as a description of leadership, culture, financial operations, and stakeholder analysis. A Supplement is provided with the case for those who wish to pursue at greater depth the financial issues surrounding Enron's collapse. This case was intended for use in MBA courses on social issues in business, or business ethics. It might also be very useful in courses on financial or accounting ethics, as well as human resource management. Undergraduate students in advanced accounting or finance courses might find the case useful in discussing ethical obligations of their respective professions. These comments are directed at those teaching either social issues or some aspect of business ethics.