Written by the Fiveable Content Team • Last updated August 2025
Written by the Fiveable Content Team • Last updated August 2025
Definition
Enron was a U.S. energy company that became infamous for its financial scandal involving bankruptcy and fraud in 2001. The scandal highlighted significant issues with accounting practices and corporate ethics in the business world.
Accounting Fraud: Deliberate manipulation or falsification of accounting records to present a false financial performance or position.
Corporate Ethics: Principles and standards that guide behavior within the business world, including honesty, integrity, and responsibility.
Bankruptcy: A legal process through which individuals or businesses unable to meet their financial obligations can seek relief from some or all of their debts