Week 5 Individual Assignment Response Hi Anita, I

Week 5_Individual AssignmentResponse Hi Anita,I agree with your opinion that “The Enron failure revealed a failure of corporate governance, in which weak internal control mechanisms enriched certain managers at the expense of the shareholders”. The key decisions of the company were made by Kenneth Lay, former chairman and CEO of Enron, and Jeffrey Skilling, former CEO and Chief Operating Officer (COO). In my opinion, the two individuals led to the collapse of the organization since they failed to take responsibility for the losses made by the company; instead, they decided to hide the truth from the shareholders. Skilling in particular, claimed before the collapse, that he had never failed in any business. Skilling and Lay were therefore more determined to protect their reputation of creating profits at the expense of the other stakeholders. I also agree that, Arthur Andersen was driven by greed, and therefore misled the board of directors of the company about the actual financial health of Enron, against its professional responsibility. However, I also believe that the board was not keen enough at its oversight role.