Well. It took 4-1/2 years from the beginning to the end: Enron CEO Jeffrey Skilling and founder Kenneth Lay were found guilty in federal court of the biggest corporate conspiracy and fraud case in the US.
Skilling was found guilty on 19 counts of conspiracy, fraud, false statements and insider trading and Lay was found guilty on all six counts of conspiracy and fraud.
The jury found they misled the public about the true financial health of Enron, whose collapse in late 2001 triggered the tsunami of corporate fraud that swept the United States. Enron's collapse marked the first of the high-profile corporate scandals, followed by WorldCom, Global Crossing, Adelphia and Tyco. And there was a ripple effect that hugely impacted accounting firms and corporations. All this fraud led to passage of the Sarbanes-Oxley law that tightened oversight of how American companies are audited.
Phew. To be honest, it is a bit anti-climactic. I hope it is not because I am inoculated to the outrageousness of the crimes. These crimes cannot possibly be minimized just because they are so-called "white collar" crimes. The Enron leadership (Skilling and Lay et al.) built a house of cards on lies, greed, selfishness and malfeasance that collapsed and buried thousands of innocent employees as well as scores of investors, many of whom had invested their life savings. How much? Enron's collapse took with it more than $60 billion in market value, almost $2.1 billion in pension plans and 5,600 jobs.
Ahhh, here it comes... I am feeling that same wrath and rage when the news first hit in 2001. At the time, I remember thinking, Don't "we the people" have oversight through multiple impartial processes, like regulations and regulators...the government, accounting firms, the 4th Estate? Where was everybody? How could this happen? Was anyone doing what they were supposed to be doing?
After 4-1/2 years of investigation we now know that a whole lot of people were either incented to go along or look away...and others were so bamboozled by the intricate shell game they missed the fraud entirely.
The question really should be, "How did Enron get busted?" After all, weren't these guys "the smartest guys in the room"?
Turns out that in the months prior to Enron declaring bankruptcy, several employees at the company stated concerns about accounting practices and dubious partnerships. One employee, Sherron Watkins, who was VP for corporate development, courageously raised her voice loud and clear. She wrote to Ken Lay and management of improper management (yeah, she held a mirror to the crooks!) and accounting practices that threatened to destroy the company. She saw the pattern of behavior and what was at stake. And took a stand. Not just in the "privacy" of the company...she went public.
Sherron and others like her in Enron prove that the best and most effective "regulation" comes from "within" to be reliable: from the hearts and consciences of people who naturally turn to a principle, a code, a higher value system to guide them, no matter what the situation might be. Many relate this principle to a higher wisdom, a guiding Spirit. I know I do.
An organization is not a mindless machine, it is an orchestration of mentalities -- people whose daily thoughts and decisions shape and regulate a company. How important, then, for companies to encourage all of their employees to discover and develop those spiritual values that best promote goodness, honesty, integrity, compassion. Imagine what the force of everyday workers calling on their spiritual nature to do what is right could do for their companies, their investors and the public. There would be far fewer Enrons, and far more examples of the goodness of spiritual power.
"Honesty is spiritual power. Dishonesty is human weakness, which forfeits divine help," wrote spiritual thinker and businesswoman Mary Baker Eddy, who founded a global publishing and communications company in the 19th century that still exists today.
Anyone of us, wherever we work, may be presented at any time with an ethical choice: to rely on a higher wisdom, recognize and act in accord with our spiritual nature and do what is right -- or go along with a prevailing practice that is less than honest. If anyone is in doubt, the convictions of Enron management should reinforce proper behavior. But the fear of punishment cannot ensure ethical practice.
What the Enron example really illustrates is the power of a few good people to act in accord with their spiritual nature and do what is right. If you are faced with the choice, will you stand with these few good people? You will be expressing your true spiritual nature...and standing with spiritual power.