Shadow Casting the Enron’s Case - Sample Essay
Which attitude and behaviors of Enron’s leaders do you find most offensive?
Corruption and fraud. This is because through this activities they managed to hide billion of dollars hence leading to bankruptcy of Enron’s corporation. Greed is also depicted clearly as the officers were involved in stealing from the Enron.
Did one shadow caster play more important role than other in causing the collapse of Enron?
Yes. Andrew Fastow the chief financial officer misled other executives and Andersen from audit firm about accounting practices during auditing. This was to protect him from being exposed as a corrupt person.
How much responsibility should the board of directors assume for what happened to Enron?
They should have a prison sentence. They should be held responsible for damages they caused to the Enron Corporation. They should pay for losses suffered by shareholders for negligently allowing the top management to defraud the Enron.
Should the law be changed to seek restitution from the estate of the convicted like Lay who die before they have a chance to appeal?
Yes. This is because seeking restitution from the estate of the convict is a just way of restoring to the shareholders and employees what they lost in their partnership with the Enron Corporation (Burrows, 2009).
What similarities do you see between what happened to Enron and other well-known companies accused of wrong doing?
Corruption and fraudulent activities seem to be the most common thing that Enron corporation and other companies accused of wrong doing share. There is also misappropriation and misallocation of funds. Greed for more wealth is depicted among the top executives officer which basically leads to disagreements among managers. In both the companies and audit firms conspire to make sure they succeed in their unethical wrongdoing.
What can be done to prevent future Enrons?
The government should enact strict regulations and laws governing the operations of the companies. The top management staff should be well trained on ethical standards.
Corruption and fraud are serious mistakes and hence the punishment for offenders should be severe. The motives of top executive officers and employees at large should be scrutinized to ensure they are genuine (Ameresekere, 2011).
What leadership and followership ethics do you draw from this case?
One should always be honest in their work. Commitment and dedication to ones work is important as this is one’s role to play when working. Accountability and transparency is mandatory at work (Brooks and Dunn, 2010).
- Brooks, L. J., & Dunn, P. (2010). Business & professional ethics for directors, executives, & accountants. Mason, OH: South Western Cengage Learning.
- Burrows, A. S. (2009). The law of restitution. Oxford: Oxford University Press.
- Ameresekere, N. S. (2011). UN Convention against corruption to combat fraud & corruption: A cancerous menace : with mere rhetoric subverts UN Convention. Central Milton Keynes: AuthorHouse.