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Accounting for Enron: shareholder value and stakeholder interests

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  • Thomas Clarke

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

  • Thomas Clarke, 2005. "Accounting for Enron: shareholder value and stakeholder interests," Corporate Governance: An International Review, Wiley Blackwell, vol. 13(5), pages 598-612, September.
    • Handle: RePEc:bla:corgov:v:13:y:2005:i:5:p:598-612
    DOI: 10.1111/j.1467-8683.2005.00454.x
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    References listed on IDEAS

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    1. Simon Learmount, 2002. "Theorizing Corporate Governance: New Organizational Alternatives," Working Papers wp237, Centre for Business Research, University of Cambridge.
    2. Stiles, Philip & Taylor, Bernard, 2002. "Boards at Work: How Directors View their Roles and Responsibilities," OUP Catalogue, Oxford University Press, number 9780199258161.
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    Cited by:

    1. Linsley, Philip M. & Shrives, Philip J., 2009. "Mary Douglas, risk and accounting failures," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 20(4), pages 492-508.
    2. Charles T. Crespy & Van V. Miller, 2011. "Sustainability reporting: A comparative study of NGOs and MNCs," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 18(5), pages 275-284, September.
    3. Hongjin Zhu & Pengji Wang & Chris Bart, 2016. "Board Processes, Board Strategic Involvement, and Organizational Performance in For-profit and Non-profit Organizations," Journal of Business Ethics, Springer, vol. 136(2), pages 311-328, June.
    4. Haroon ur Rashid Khan & Murad Ali & Hossein G. T. Olya & Muhamamd Zulqarnain & Zubair Rashid Khan, 2018. "Transformational leadership, corporate social responsibility, organizational innovation, and organizational performance: Symmetrical and asymmetrical analytical approaches," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 25(6), pages 1270-1283, November.
    5. Adriano Stadler & Edson Andrade dos Reis & Elaine Cristina Arantes & Jansen Maia Del Corso, 2017. "Study on Professors’ Perception With Respect to Higher Education Institutions’ Socially Responsible Initiatives," Brazilian Business Review, Fucape Business School, vol. 14(6), pages 592-608, November.
    6. Christopher, Joe, 2012. "Tension between the corporate and collegial cultures of Australian public universities: The current status," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 23(7), pages 556-571.
    7. Christopher, Joe, 2010. "Corporate governance—A multi-theoretical approach to recognizing the wider influencing forces impacting on organizations," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 21(8), pages 683-695.
    8. Joe Christopher & Philomena Leung & Shane Leong, 2017. "Can Employees Be Used to Overcome Independent Audit Limitations?," Australian Accounting Review, CPA Australia, vol. 27(4), pages 442-456, December.
    9. Adeyemi Adebayo & Barry Ackers, 2024. "Managing Trade‐Offs Between Environmental, Social, Governance and Financial Sustainability in State‐Owned Enterprises: Insights from an Emerging Market," Australian Accounting Review, CPA Australia, vol. 34(1), pages 55-73, March.
    10. Sebahattin Demirkan & Harlan Platt, 2009. "Financial status, corporate governance quality, and the likelihood of managers using discretionary accruals," Accounting Research Journal, Emerald Group Publishing Limited, vol. 22(2), pages 93-117, September.
    11. Ayman Mohamed Zerban & Abdullah Mohammed Abdullateef Madani, 2017. "Corporate Governance and Board of Directors Responsibility in Appointing Senior Managers: A Case in Saudi Arabia," International Journal of Business and Management, Canadian Center of Science and Education, vol. 13(1), pages 183-183, December.
    12. Adel Elgharbawy & Magdy Abdel-Kader, 2013. "Enterprise governance and value-based management: a theoretical contingency framework," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 17(1), pages 99-129, February.
    13. Dorothee Feils & Manzur Rahman & Florin Şabac, 2018. "Corporate Governance Systems Diversity: A Coasian Perspective on Stakeholder Rights," Journal of Business Ethics, Springer, vol. 150(2), pages 451-466, June.
    14. Alexandra Portalanza, 2013. "Gobierno corporativo una aproximación teórica," Revista Saber, Ciencia y Libertad, Universidad Libre - Sede Cartagena, vol. 8(1), pages 117-124, January.
    15. MuiChing Chan & John Watson & David Woodliff, 2014. "Corporate Governance Quality and CSR Disclosures," Journal of Business Ethics, Springer, vol. 125(1), pages 59-73, November.
    16. Xingqiang Du, 2014. "Does Religion Mitigate Tunneling? Evidence from Chinese Buddhism," Journal of Business Ethics, Springer, vol. 125(2), pages 299-327, December.
    17. Lippert, Inge, 2008. "Perspektivenverschiebungen in der Corporate Governance: Neuere Ansätze und Studien der Corporate-Governance-Forschung," Discussion Papers, Research Unit: Knowledge, Production Systems and Work SP III 2008-302, WZB Berlin Social Science Center.

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