Harmful Enron Practices Widespread, Scott Klinger, United for a Fair Economy
The Enron fiasco's only silver lining, perhaps, is that it highlighted questionable practices that drive profit-hungry companies. However, as financial analyst Scott Klinger reports in United for a Fair Economy, many of the manuevers that led to Enron's collapse, like tax dodges, undue risks for workers and excessive rewards for executives, are not only legal, but widely practiced. Klinger cites several companies that employ Enron-like means to pad profits, including Coca-Cola, Boeing and Vice-President Cheney's former company, Halliburton. To combat these harmful practices, Klinger suggests a '12-Step Recovery Program' that would include stronger disclosure requirements and a higher audit rate. Until then though, these companies can enjoy their status as the prideful recipients of Klinger's 'Enny' award.
--Julie Madsen
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