ENRON notes Kenny Jeff Skilling Share prices increasing until its eventual demise Increase profitability at all

t all costs (That is a short term focus ) Making ludicrous amounts of money Positive accounting Theory 1. Self-interest (Maximise wealth) = Greed [Totally infiltrated the company)

Man with Big Idea Was able to infiltrate company and leadership When leader/boss changed appearance (eg latex on eyes) employees would do the same He had visionary (grand ideas and could communicate those ideas) Passionate about the company, really cared, very calm and able to install confidence to those working at the organisation

Trust, independence, reliability = accountant Boss was aggressive, assertive, manipulative and very comfident HOW DO YOU MAKE PROFIIT?

Enron Corporate culture Survival of the fittest Darwin (animalistic) If I want to get ahead, I will step on that guys throat) No real teamwork (trying to get ahead at all costs) Gambling at such high rate Aggressive/ dangerous/competiveness All about private/self-interest Trying to maximise their own contribution to the company Everyone benefited from this machine Everyone was tied into the money-making process at all levels Knew what they are doing is wrong, but dont want to confirm it because they will have to face reality Playing a global virtual world What would happen to the individual who raised those questions (probably let go)

Who has the POWER? (multi-national organisation/governments/ big 4 accg firms)

Why did no one investigate earlier? No investigation due to the relationship with Bush administration They thought they could get into the government administration Enron captured the regulators (Capture theory)

You dont go shredding audits for no reason unless something dodgy is going on Anderson audit film (getting mostly paid advisory fees) than for the actual work conducted Could that mean bribery?? Global Financial Crisis (mortgages to anyone)

Ask Why, Asshole High profile CEO cant use such terms when talking to investors (starting point of downfall)

Ship is Sinking (Sherron Watkins) Enron was built on a lie Sherron Watkins had access to everything she was brought to the lowest level after she questioned Enrons practices Issues on security and safety