Preventing backdating of

28 Oct

Sherron Watkins, Enron's sentinel, describes the debacle's details and warns that it could happen again. The Enron debacle was anything but simple, but what were a few of the reasons why it happened?

Nearly 5,000 were called to a massive meeting and told that the paychecks that they had recently received would be their last. In August of that year, Sherron Watkins, an Enron vice president, had sent an anonymous memo to Lay that read, "I am incredibly nervous that we will implode in a wave of accounting scandals." Of course, that's exactly what happened. (After sending the memos, she had met with Lay with no results.) Watkins was soon lauded as an "internal whistle-blower," brought before Congressional and Senate hearings to testify against her former bosses, and heralded by TIME magazine as a "Person of the Year," with World Com's Cynthia Cooper and the FBI's Coleen Rowley.

These troublesome filters are quickly becoming renowned for their wallet emptying powers and are attracting a lot of media coverage in the process.

The last poor soul to contact me asked about using a DPF cleaning fuel additive.

This approach is taken in order to provide a wider and more comprehensive answer.

It collapsed into bankruptcy without ever reporting a losing quarter.

Many experts summarize "what happened" at Enron using two words, greed and arrogance.

An accurate summary, I agree, but it fails to help others learn from Enron's demise. How did a company's culture breed not only corruption from its own employees but also disreputable behavior from the outside auditors, lawyers, consultants, and lenders?

Moreover, companies with strong positive reputations attract better talent and are perceived as providing more value in their products and services, which often allows them to charge a premium.

Their customers are more loyal and buy broader ranges of products and services.