What makes this a human relations catastrophe was that Enron executives kept on painting rosy pictures in the company, even as they knew (or need to have known) that the business was in deep financial trouble. "Enron officials actively encouraged workers to purchase Enron stocka.Enron workers were additional hamstrung by Enron's switching of plan administrators and freezing of all asset shiftinga.The result was ruin" (Kadlec 2002 34) Ruin isn't too powerful a term. Tom Brokaw, on NBC Nightly news, the week of February 4, featured interviews with Enron employees, a Oregon couple, who would now have to market at least part of their farm which have been within the family for generations, just to survive. Their retirement money, along with that of several others, some of whom testified in Washington, was now gone. he reason is not merely the shenanigans on the business with its auditors, but the untruths told faithful employees to make them believe that they had been not on a Titanic-like sinking ship.
NEWSWEEK, among other general interest magazines, spent pages covering the executive failures at Enron. Over Enron employees and shareholders suffered at the collapse in the energy giant, Enron, as is created clear in a couple of NEWSWEEK articles, during the February 18,2002 issue, by Evan Thomas and Daniel McGinn (pp. 24-32). Thomas' article creates it clear how the major fault lay in the top executives, and each their greed in amassing own fortunes, and their deceit.
The excuse offered just before Congressional investigators by former CEO Jeff Skilling was not even believed by his mother. "Incredulity is often a polite word to describe the reaction toa.Skilling, who swore last week at a congressional hearing that his company's bookkeeping trickery had caught him by surprise" (Thomas 24)
in not letting employees as well as other interested parties (including financial institutions and investors) know on the company's dire financial straits.
The article also makes clear that it is not merely Enron employees and shareholders who are suffering, but that particular stocks are taking a beating: "They are mostly corporations with hard organization models or confusing financial statements- like Tyco." (McGinn 29)
So, we know individuals lied. What's Congress going to accomplish about it? "Legislation sponsored by Rep. John J. LaFalce (D.NY) also would establish a new accounting industry oversight boarda.Congressional investigators say they are close to a deal with Enron to allow public disclosure ofa.tax records" (Bloomberg 2002 C5) In addition, Arthur Andersen executive, David Duncan, who was fired by Andersen after admitting he shredded key evidence, "pleaded guilty to obstruction of justice, admitting he tried to thwart an Enron investigation by the Securities and Exchange Commission" (Hays 2002 2) He was cooperating in the federal government investigations in return in your plea bargain.
There are various lessons to become learned for anybody looking for success in the corporation world. Ethical corporation practices, of course, head the list. However, the idea of inflating accomplishment for ones benefit of financial institutions and shareholders is seemingly so prevalent now that Enron is simply the tip with the iceberg.
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