How Companies Lie : Why Enron Is Just the Tip of the Iceberg - Softcover

A-larry-elliott-richard-j-scroth-richard-j-schroth-a-larry-elliott

Softcover

ISBN 10: 1857883225 ISBN 13: 9781857883220

Publisher: Nicholas Brealey Publishing, 2002

Synopsis

Enron, Tyco, Sunbeam Global Crossings, Waste Management are but the tip of the iceberg, the symptoms at the surface that reveal what companies of the future have to do to keep the economy from going into a tailspin and crashing. There are ways for individual investors to spot companies that are using smoke and mirrors and are in danger of becoming the next Enron. Larry Elliott and Richard Schroth explain what to look for - and what to look out for. They warn of: the mechanics of mendacity; the art of artful dodgers; words without foundation; the fog of corporate complexity; and dysfunctional governance. Using Enron as the touchstone and bringing in examples of other companies such as Micro Strategy, 3Com and Abbott Laboratories, the authors show what needs to be done to save capitalism from the capitalists, and improve what has become history's greatest system of wealth creation so that it benefits not just a few greedy insiders, but all of us.

About this title

From the Inside Flap

The questions investors need to ask . . . The answers corporate America must give about the true facts of corporate performance and value.

During the 2001 baseball season, when games were played at Enron Field in Houston, a typical reaction was: “What the hell is Enron and what do they do?” Now we know more about the executives and inner workings of today’s best-known rogue company than we ever imagined. But it turns out that Enron is just the most egregious case of a disturbing trend and the seemingly unstoppable tendency of some capitalists to destroy capitalism. Something like 50 percent of American households directly support the markets by investing in stocks and mutual funds. But some of the people entrusted with the responsibility for maintaining and managing the corporation—senior executives, boards of directors, auditing firms—have become engaged in what can only be called economic terrorism.

Enron, Sunbeam, Global Crossing, and Waste Management are but the tip of the iceberg. Luckily, there are ways for investors to spot corporate smoke and mirrors and challenge the players. Larry Elliott and Richard Schroth show investors the questions that need to be asked to get a handle on the performance reality of companies. The corporate world, in turn, needs a return to reality and authenticity in business operations, finance, accounting, and deal making. This need for performance reality is not an issue confined to a few companies who engage in unethical and illegal behavior. The technological pace of change, along with increasingly complicated business transactions, makes global markets more and more complex. The assumption, however, has always been that we have the management competence and rigor to ensure shareholder value. Enron is definitive proof that the way companies are run—the gap between what they say is reality and what is really the case—is frightening. And this gap has severe implications for millions of people who are employees of and investors in these companies.

Using Enron as the touchstone, Larry Elliott and Richard Schroth show investors how to think about and measure the candor of corporations, the Wall Street players, and their supporters.

About the Author

Richard Schroth is founder, CEO and President of Executive Insights Ltd, and Executive Viewpoints, Inc private advisory and speaking services. He has been a personal advisor to CEOS of companies such as Pfizer, KPMG, Bank One, Monsanto, Marriott, A&T and GE Capital. Larry Elliott is a senior partner with Heiderick and Struggles, a leading executive search firm.

Edition details

• Publisher: Nicholas Brealey Publishing
• Publication date: 2002
• ISBN 10: 1857883225
• ISBN 13: 9781857883220
• Binding: Paperback
• Language: English
• Number of pages: 168