1. What risks did Sherron Watkins take by writing the six-page letter to Kenneth Lay? Do you believe she should have written the letter? Why or why not?
Sherron Watkins takes a lot of risk when she decides to write a six-page letter to Kenneth Lay. She puts her jobs as well as personal and family safety at risk. This is because she may be fired, sued, blacklisted, arrested, threatened, or even assaulted or killed by Kenneth Lay and other top executives who responsible for Enron’s collapse. For instance, if she get fired, it is hard for her to find another employment because the other employers may be in doubt on her capabilities as she get fired from Enron, the “America’s Most Innovative Company” as named by Fortune for six consecutive year. Thus, during the decision-making process, it can be a financial and emotional hardship for Sherron Watkins.
However, we do believe that she should have written the letter. As what Sherron Watkins said in one of the interviews, “If your values are being challenged, get out, because you cannot change an unethical corporation unless you are at the very top. Pay attention to rationalizations.” The famous rationalization at Enron was, “What do we have accounting rules in this country for, if you do not use them.” Enron has the obligation to comply with the underlying principles in the accounting rules and when Enron break the rules, there must be someone who comes out to report or correct the mistakes in order to save countless lives and billions of dollars in public funds and prevent the disasters from worsening.
Furthermore, Sherron Watkins as vice president for corporate development of Enron shall adhere to Enron’s ethics code which based on respect, integrity, communication, and excellence. When Enron has no longer practice the respectful treatment, did something that they say they will not do, does not communicate and move the information well to the public as well as does not committed to excellent in everything they do, Sherron Watkins as an employee of Enron should conform to the code of ethics by exposing corruption, fraud, conspiracy, mismanagement and other wrong doing that threaten public interests, financial integrity and human rights.
2. Suppose that Sherron Watkins decided to do nothing with the knowledge she had regarding Enron’s “funny accounting”. What would have been the possible risks (or consequences) to her for failing the act?
The possible risks to her for failing the act is Sherron Watkins will be sued for the harm caused to the collapse of Enron since she is the vice president for corporate development of Enron. This is because she does not voice out the misconduct of the company to people who can do something to solve the issue. Every director is expected to act in good faith and in the best...