#7432
Jen BudneyJen Budney
Participant

Here it might be important to think as well of the Board’s role in policy oversight, including codes of conduct. Not stated in our case summary, but published in many other stories on this case, is that the two firms, Arthur Anderson and Enron, were displaying what’s called “inappropriate and atypical” familiarity – with the employees of Anderson engaging in frequent social activities such as ski trips and charity fundraisers organized by Enron, and vice versa. As 27% of the Anderson’s auditing revenues were generated from Enron, this should have raised eyebrows – the opportunities for collusion were abundant. What role could the board have played in this case?

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