Current situation: I have been working in the Tax Attorney’s Office before the promotion. Recently, I hold the position of General Counsel within Global Finance. Conducting my personal investigation, I found out that Enron’s CFO Andrew Fastow had committed a fraud. He created a company called LJM in the Enron Corporation. Fastow’s plan is to have partial ownership in LJM which enables him to gain profit covering the expenses by Enron.
Vision: As a Counsel General, it is my responsibility to watch over the company’s and shareholders’ interests. I consider ethical principles are the basis of fair business. Consequently, I want to resolve this ethical conundrum with minimal damage.
Mission: The main purposes are to avoid the conflict with management of the company and to preserve the funds of shareholders.
Assumptions: During my inquiry, I have come to the conclusion that the board, or at least a part of it, is aware of the situation. To the addition, Fastow’s plan is weak and can be revealed easily.
Strength: I have the evidence to reveal the fraud.
Weaknesses: I do not have enough documents to prove my position and to accuse Fastow.
Opportunities: By brining up the issue, I have the ability to balance the interests of the company and its shareholders. It also gives me an opportunity to justify my promotion.
Threats: The situation puts me in a predicament. Concerning the seriousness of the situation, shareholders can bear the serious losses which can blow to the reputation of Enron. I cannot conceal the information, because after the disclosure of a fraud, my position would be questioned.
Analysis of Strategic Issues: I cannot face the CFO with the inquisitions due to his powerful position in Enron. I can raise the point to the board of directors, but it can cause a risk of their hiding the information to protect them from responsibility. I also can leave the matter in the hands of management. They have the ability to slow down the process of disclosure of the information.
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