Accounting for Enron: Shareholder Value and Stakeholder Interests

15 Pages Posted: 21 Sep 2005

See all articles by Thomas Clarke

Thomas Clarke

University of Technology, Sydney

Abstract

The catastrophe caused by the failure of Enron could not compare with the damage this company would have caused if it had succeeded. The relentless emphasis on the importance of shareholder value in recent times has created the conditions for the disconnection of corporations such as enron from their essential moral underpinnings, encouraging them to concentrate exclusively on financial performance, and to neglect not just the wider stakeholder interests of customers and employees, but the essential interests of the economies and communities in which they operate. The problem with established economic theories of corporate governance is that they misconceive the irreducible core of corporate governance, at the same time as underestimating the complexity of the phenomenon.

Suggested Citation

Clarke, Thomas, Accounting for Enron: Shareholder Value and Stakeholder Interests. Corporate Governance: An International Review, Vol. 13, No. 5, pp. 598-612, September 2005. Available at SSRN: https://ssrn.com/abstract=791827

Thomas Clarke (Contact Author)

University of Technology, Sydney ( email )

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HOME PAGE: http://www.ccg.uts.edu.au

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