What does Enron's collapse mean for China enterprises?

One of the frustrating reasons for bankruptcy is the loss of Enron's culture and integrity. Driven by interests, in the face of honesty and interests, Enron chose the former. Enterprises must give consideration to both reputation and interests and cannot lose their way. In addition, the corruption and moral deficiency of management will also ruin the cultural foundation of an enterprise, and the failure of the regulatory authorities to verify the work is also a taboo for the decline of enterprises.

Avoidance methods: strengthen professional ethics education, establish and improve the supervision and management mechanism, pay attention to the quality training of management, shape their own corporate culture and values, and don't be arrogant and despise debt risks, especially the risks brought about by changes in the external macroeconomic environment of enterprises. Ignoring decision-making risk is a fundamental mistake made by Enron's decision makers, and the most important reason for Enron's bankruptcy is that the company blindly abandoned its main business and turned to new fields such as electronic trading, which led to the company's out of control. Therefore, enterprises should learn from it, don't underestimate the risk of debt, choose their own strategic direction correctly and avoid mistakes.