Question

Could you please help me to do this work?

I need agreement and disagreement of authors about Enron Scandal. You could made up arguments like I did with agreement.

Also, I need to specife two areas which were not described in these resources about Enron

Really need help

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Answer 1

Please scan through the literature available at your end as well. Needless to say, these questions are very subjective in nature and nobody can guess what's a right or a wrong answer to this. I have put together my thoughts below. Please use the same as back bone to develop your own answer.

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Find two areas of disagreement in the literature:

That there were enough early signs to discover the scandal well before it actually got discovered

• Many analysts and reporters have said that there were ample evidences well in advance to discover this scandal. Say for example, resignations of the key employees, mark to market accounting practise, keeping debt off the balance sheet etc.
• There are many who believe that either such early warning signs were not very evident and even if they were, it was very hard and difficult to make something sensible out of them. Such school of thought believes that it's very difficult to predict or anticipate a corporate fraud.

Employee stock options and top management compensation were responsible for Enron scandal

• One school of thought believes that Enron scandal was caused by the stock option plans and high compensation given to the top management there. Hence, employees never felt the need report the wrongdoings. Nobody cared to turn against the practices of the company because they were paid so well.
• Other school of thought believes that employee stock option plans or compensation plans of top executives per se are not wrong. Frauds don't happen because of them. Frauds happen due to lack of incentives to report frauds. Frauds go unreported because there is no incentive to be a whistle blower.

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Outline two areas the literature has not addressed:

• How to solve the conflict of interest or the agency problem? This problem has remain unsolved since time immemorial. What should be the role of CEO? How can he be made to work in the interest of shareholders? Should the role of Chairperson and CEO be combined or kept different?
• How to implement a strong whistle blowers' policy? Many have talked about the need for one such policy but how to put it under implementation has been largely unaddressed. What could be done so that whistleblowers are encouraged and incentivised to act ahead of time, and well in advance.