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Enron and Cindy Olson's Role

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Should Cindy Olson have made her first priority Enron or its employees? Explain your reasoning. I have my own opinions of this subject but would like to hear another. I think that she had a responsibility to both but as a HR representative she knew that she was bound to uphold the ethical issues involved in protecting the employees involved.

I have to do a 5 page essay on ethical behaviors and their results I have four of them done and the last needs to be on one that is not yet resolved. This is one that is still in the process of being hashed out in court but I felt that it had a great potential for discussion.

Please be sure to cite and references and list them for me.

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Solution Summary

This solution describes the Enron Saga and how Cindy Olson was involved in the situation. All references used are included.

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Enron saga

Enron was founded on January 1, 1985 with the merger of Houston Natural Gas (Houston, TX) and InterNorth (Omaha, NE), and became the nation's largest gas pipeline system with a network of more than 34,000 miles. The company was at a compound annual rate of more than 60 percent from 1995 through 2000. The highest and amazing growth came in 2000, which its revenues increased from $40 billion in 1999 to over $100 billion just a year later. At the time it filed for bankruptcy on December 2, 2001, it was
considered the seventh largest publicly traded corporation in the United States. Enron's bankruptcy caught and shocked many investors because they were surprised that the company's executive members like Cindy Olsons were unaware of the firm's financial obligations. These obligations were "contingent liabilities related to unconsolidated off-balance sheet special purpose entities SPEs substantial liabilities appeared on the balance sheet as "liabilities from risk management activities." (Grazian).

Infact the executives like Cindy Olson and insiders at Enron knew about the offshore accounts that were hiding losses for the company, however, the investors knew nothing of this. Chief Financial Officer Andrew Fastow led ...

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