4-1 Discussion: Criminal Responsibility
To complete this discussion, base your work on Enron, WorldCom, or another white collar crime story of your choosing.
• Name the company you selected and briefly summarize the crime.
• Do you think that the CEOs and other corporate officers involved were justly held criminally responsible or not? Explain your perspective.
• Do you believe that business can regulate itself to act ethically, or is government oversight a necessity to protect the public from financial wrongdoing? Explain your position.
Respond to at least two of your peers who focused on a company other than the one you selected. Offer your own perspectives on whether the CEOs and other corporate officers involved were justly held criminally responsible or not.
Response One: Jessica
The company I chose was Enron and the crimes they committed were securities fraud, wire fraud, money laundering, mail fraud, and conspiracy. Shareholders lost 74 billion dollars in 4yrs and billions in employee pension benefits. They estimated profits instead of actual profits on their financial statements and hide losses in companies that didn’t have to report these statements. The CFO and CEOs were given adequate prison sentences but their fines I don’t think were adequate.
In comparison with the crimes committed and the people hurt by those crimes, they should have to complete the full sentence given. Government oversight is a necessity to protect the public from businesses committing financial wrongdoing. In serval instances, businesses have acted unethically to produce profits with no regard to persons being affected by their actions.
References
Segal, T. (2021, September 15). Enron scandal: The fall of a Wall Street darling. Investopedia. Retrieved September 21, 2021, from https://www.investopedia.com/updates/enron-scandal-summary/.