I do not believe that Lay was a victim of an agency problem as he claimed. He obviously used Enron to better his own family, as it is proven in the case when it states that he used his sister’s travel agency even after being told that it would be more economical for the company to use a different one. He also used Enron to help his family as shown when it states that he hired his son even was facing fraud and embezzlement charges. Finally, he even allowed his daughter to use the Enron jet for personal use.
Even if he didn’t personally fix the books, he should bear a lot of legal responsibility for the demise of Enron. Being CEO and taking advantage of your company for personal benefit and not stopping an unethical operation, that he was fully aware of, is cause for legal action to be taken against him.
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I agree with Beth. I also do not believe that Lay was a victim of an agency problem as he claimed. As Beth stated, he even admitted to his wrong doing. He should not of been using the Enron jet for his own use and definately should not of let his daughter use it.
It is clear to say that Lay was doing business to keep himself afloat and keep his family in a good situtation. As Beth said, he used his company in the wrong ways and seemed to be in no rush to fix what was going on. Both Beth and Jason stated that Lay allowed his daughter to use his company jet for personal use, when it could have been used for a delivery or other company travel at the time. Another great point is that he hired his son for work in a time when the company was under investigation for fraud. This case seems like a pretty sketchy operation and without a doubt Lay's actions are cause for legal ation to be put against him.
I also agree with Beth. I think that letting anyone use company property, with out them being apart of the company is really stupid. There is no question that Lay is at fault and should pay big money for his action. Not to mention did he consider that he was also putting his own daughter at risk? Probably not
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