Week 5_individual Assignment Response Hi Thomas An

Week 5_Individual AssignmentResponse Hi Thomas and Ken,I am very impressed with your analysis of the collapse of the infamous Enron. I agree with you that, the stakeholders of the company included the board of directors, the managers, employees, customers as well as external partners such as Arthur Andersen. It is true that the board of governance was not efficient enough to provide corporate governance to the company; instead, the board trusted every strategy suggested by Fastow. First, it approved the strategy to avoid investing in physical assets. Secondly, it failed to resolve the conflict of interest with the STE. What mattered to the board was the shareholder value and nothing more. The board therefore failed to supervise the activities of the executives of the company. However, your post has not adequately covered on the involvement of external partners of the company in the scandal as noted by Ken Simpson. Arthur Andersen LLP, the Chicago based accounting firm misled the board. According to the firm, the company’s operations were legal and risk free. Regards!