DEFINITION of Enroned
Enroned is a slang term for a person that has been negatively affected by corporate senior management's inappropriate actions or decisions. Being "Enroned" can happen to any stakeholder. This includes employees, shareholders, or even suppliers. The term is derived from the name Enron, which was an American energy company that filed for bankruptcy in late 2001 due to accounting fraud. These ill actions caused thousands to lose their jobs. The value of the stock went to zero and people who were heavily invested in the company stock also lost their savings.
BREAKING DOWN Enroned
Enroned is a term describing a person who has been cause hardship because of somebody else's greed. In any large corporation there is faith placed in upper management to make the right decisions and lead the company into profitability. Often when bad decisions are made that lead to temporary profitability and growth of a company, it is because inappropriate incentives have been put in place that encourage dishonest, short sighted behavior. When the company makes decisions that cause job loss, a reduction in benefits, or other hardship, the affected individual is said to have been "Enroned."
Example of Enroned
For example, if someone has lost their job because their employer was shut down due to illegal activities that they had nothing to do with, they have been "Enroned."