The culture of the Enron Company lead to many ethical problems throughout the downfall of this company. One of the first cultural problems started right when Kenneth Lay began to run the company. Lay instead of fixing or making the scam public he continued on with the unethical ways of the former CEO Jeffrey Skilling. Another cultural flaw within Enron was when a employee Sherron Watkins sent a memo to Lay informing him about the risks of this unlawful partnership. Watkins warned Lay that Enron could implode in many accounting scandals. Lay did not acknowledge these problems and continued on with the partnership and the scandal.
More cultural problems came about when Lay started to benefit his family handsomely through Enron. For example: when they used his sister’s travel agency as the corporate travel company. These and many other cultural flaws in the Enron Company led to many unethical acts.
Monday, October 1, 2007
Enron-Question #5 -Karli Mae Ferris
Question: Did Arthur Andersen behave ethically? If not, then why not?
Arthur Andersen was Enron's auditor who must have known about Enron's unknown partnerships after he preformed an audit on Enron. It was reported that "the Andersen partner responsible for the Enron audit had instructed his staff to shred documents related to the audit". It is also known that Andersen was paid $52 million in 2000- $25 million for auditing and $27 million for consulting services.
These facts all contribute to the theory that Andersen knew about the partnerships and the true financial state of the company. The fact that he did not make this information public and expose what Enron was doing was ethically wrong. He should have immediately made this information public to the stockholders, employees, and the Securities and Exchange Commission.
Arthur Andersen was Enron's auditor who must have known about Enron's unknown partnerships after he preformed an audit on Enron. It was reported that "the Andersen partner responsible for the Enron audit had instructed his staff to shred documents related to the audit". It is also known that Andersen was paid $52 million in 2000- $25 million for auditing and $27 million for consulting services.
These facts all contribute to the theory that Andersen knew about the partnerships and the true financial state of the company. The fact that he did not make this information public and expose what Enron was doing was ethically wrong. He should have immediately made this information public to the stockholders, employees, and the Securities and Exchange Commission.
Enron- Question # 1- Joe Boulanger
The only people that Fastow, Lay and Skilling really cared about were themselves and not the company, employees and stock holders. They were looking to get rich and trying to get away with it, with whatever methods possible. These three found a golden opportunity to score a lot of money, and there plan was to leave the company once they had cashed out. There actions affected thousands of poeple during the span of the meltdown of Enron, and in the end nobody profited from this whole situation.
I believe that Enron was run by unethical executives who were greedy. The story of Enron gives big companies like this bad names, and makes people who work hard for their money always worrying about job security. I'm sure that most big firms like this have internal problems, but not as severe as with Enron.
I believe that Enron was run by unethical executives who were greedy. The story of Enron gives big companies like this bad names, and makes people who work hard for their money always worrying about job security. I'm sure that most big firms like this have internal problems, but not as severe as with Enron.
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