It is almost certain that Enron shareholders would have ceased to continue investing in Enron had they been aware of the full significance of LJM.
LJM, in its essence, entailed that Enron was far below that which it's displayed to the public and that likely its debts were more massive and its profits far less than those claimed. Investors, obviously, would not want to invest in a poorly performing company.
Even if Enron's profits were higher and debts lower than those that the company tried to conceal, the very fact that Enron was not transparent or straight in its dealings would have caused it to lose the trust and confidence of its shareholders deterring shareholders from affiliating themselves with Enron had they been aware of the existence of LJM.
5. Discuss weather potential whistleblowers should be encouraged to report their concerns of poor corporate governance. Should they report their concerns within or outside the organization
Whistleblowers should be encouraged to expose their concern of poor cooperate government, but, to prevent ramifications form occurring to them and to encourage their openness, they should be stimulated to do so under the cover of confidentiality. Shell, for instance, implemented a site where it encourages whistleblowers to expose their concerns. In this situation, however, even thoguh confidentiality can be assumed, whistleblowers can still be tracked and they can reveal their identity would they wish to do so. This may intimidate potential whistleblowers from stepping forward. It is best, therefore, that Shell insist upon the condition of anonymity for all respondents and that the site for whistleblowers be detached from its website (perhaps with link leading to a relevant website belonging to a relevant organization). .
Both internal and external complaints of the organization should be addressed.
Whistleblowers are often deterred from coming forward, particularly since they face enormous risk that includes being ostracized by friends and employers,...
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