Question

situational conflict quiz
started: jul 2 at 11:39am
quiz instructions
this quiz contains 20 true/false questions worth 1 point each. you will have 30 minutes to complete the quiz.

question 20
enron changed its code of ethics, so it made the company look like it was complying and not being unethical.
true
false

Explanation:

Analyze the statement

The statement asserts: "Enron changed its Code of Ethics, so it made the company look like it was complying and not being unethical."

Evaluate historical facts

Enron famously had a highly detailed, 64-page Code of Ethics (often referred to as the "Code of Conduct"). Rather than changing the code to look compliant, the board of directors actually voted to waive certain conflict-of-interest provisions in their existing Code of Ethics to allow CFO Andrew Fastow to run off-balance-sheet special purpose entities (SPEs) like LJM. The existence of the comprehensive code was used to project an image of compliance and integrity, but the rules themselves were bypassed or waived rather than rewritten to create a false impression of compliance.

Determine truth value

Because Enron bypassed or waived its existing Code of Ethics rather than changing/rewriting the code itself to look compliant, the statement is technically false.

Answer:

• True
• (B) False (Correct answer)