The U. S. Supreme Court is finally going to hear arguments on what I feel is an extremely important case. While it is an appeal by the former Enron Chief Executive, Jeffrey Skilling, it affects every business person with responsibility for operating a company, especially where a large group of employees and the public are concerned.
The question: What constitutes “honest-services” to shareholders or to the public, when it comes to reporting on company financial conditions? I feel it is a case of whether a glass is half empty or half full.
Because the CEO has to be an optimist to prevent the proverbial corporate roof from easily falling in, and employees and customers fleeing, losing jobs, etc., you must give the executive some legal leeway or slack.
A top executive who is not a cheerleader is doing an extremely poor job. Unfortunately, too many jurors and judges are not aware of this business fact.
You cannot holler “fraud” at the drop of a hat every time disaster strikes a company. That is a ploy used by plaintiff lawyers doing what they do best, and who always charge that the glass was half empty.
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