Wise Decision: Sherron Watkins Letter to Kenneth Lay

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Recommended: Describe the organizational culture of Enron

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. ...

... middle of paper ...

...some pointed out that Watkins never really blew a whistle by just sending a memo to the bank robber suggesting him to stop, but according to the meaning of whistle blower, he or she could make their accusation internally. That was what Watkins had done. She exposed the top officials’ frauds and tried to persuade and suggested them to make changes by make a way to quietly and quickly reverse and write down the transactions. Even though Watkins carried the ways to make allegations internally, but she still did the right things by reminding the tops on their illegal activities. As to is, Watkins had right to be worry and become concern on the Enron’s current situation at that time. She was one of their employees and of course she would worried in the things that involving her future. So, Watkins was a whistle blower who tried to expose Enron’s corruption internally.

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