I recently heard Sherron Watkins — Enron whistle-blower and Time Magazine Person of the Year, 2002 — speak at an event. Some notes on her perspectives:
- She was initially reprimanded in 1996 for reporting accounting issues.
- Optimistic that the truth would win out, she reported her fraud findings to CEO Ken Lay on August 22. By August 24, the legal department had responded to his request regarding the consequences for laying off a whistle blower.
- Enron collapsed in December of 2001, followed by WorldCom and others. The country could not capture the 9/11 terrorists, so they went hard after these commercial thieves.
- When the best and brightest are hired, and given high pay and high promotions…moral and upright foundations become clouded and turn into an “I can do no wrong” mentality.
- Money incentivizes you to say, “this is OK.” What used to look “black,” now looks “white.”
- 14 Enron executives went to prison because they rationalized from black to grey to white. Due to this rationalization, 50% could pass a lie detector test saying, “I did nothing wrong.”
- After Wall Street rewards you, everyone appreciates your money (friends, non-profits, church).
- Fear of “what we have” (job/money) is “who we are”: there is a cost of speaking truth to power as you stick to your values and stay true to yourself.
- Character is what you are doing when no one is watching. When in doubt, use the 3M Test: how would you feel if your activity was known by a) Mentor you most respect, b) Media – front page, or c) your Mother.
- “My biggest concern is that we haven’t corrected the problem that led to the 2008 financial scandals.”
If an employee produces but does so with unlawful behavior, does your company stick to its values or overlook the transgression?
