| The collapse of Enron, the giant energy
corporation out of Houston, has led to widespread speculation as to not
only what went caused the collapse but also, how the danger signs could
have gone undetected for so long. The accounting firm of Arthur Andersen,
considered one of the Big Five accounting firms, was responsible for auditing
the Enron books, and now they are sharing in the public relations nightmare
that is part of the fallout from their client's bankruptcy.
Not surprisingly, Congress is moving toward
legislation aimed at preventing this from ever happening again. However,
the current system of auditing was put in place the great stock market
crash of 1929, in order to prevent that from ever happening again.
Consequently, the debate is on about what more is
needed. A couple of quotes from an article in the USA Today, however, are
very sobering to me. Arthur Bowman, who is the editor of Bowman's Accounting
Report, said, "If we have more accountants in jail, it would be a deterrent."
In a similar vein, former SEC chairman Arthur Levitt suggested, "Behavior
is changed by fear and humiliation. Rulemaking and legislation keep behavior
changed."
This seems to me to be a shockingly sad commentary
on the state of our national character and culture. I suppose it shouldn't
be surprising, though. Surveys have shown more and more people adopting
the idea that lying isn't necessarily wrong and the college campuses are
being inundated with students who feel there is nothing wrong with cheating
on assignments, papers, and exams.
Whatever happened to the notion that we do
what is right not by fear of jail or humiliation but simply because it
is right? Our freedom, which we cherish so preciously, is based on the
notion that we will choose to do what is right. When we do not choose to
do what is right, then something outside ourselves has to come in to compel
us to do it.
Consider the shocking treatment of workers
by businesses during the industrial revolution. The business owners had
a choice to make, and they chose to place increased profits ahead of human
decency. What happened? The labor movement, and now, a business can't choose
to close an obsolete factory or change production processes without consulting
the unions. The failure to choose what was right led to a loss of freedom.
Or consider the discrimination that exists
in the workplace. Personnel offices had a choice to make, and they chose
not to hire qualified women and minorities. What happened? Equal employment
opportunity laws and affirmative action requirements, and now, when an
opening needs to be filled, it's not enough to say, "Who has the best skills
or the most experience?" Personnel offices have to keep track of the color
and gender of applicants and employees and consider those non-work related
factors as well. Once again, freedom was lost because of a failure to choose
what was right.
There is a famous quote, often attributed wrongly
to Alexis de Tocqueville, which says, "Not until I went into the churches
of America and heard her pulpits flame with righteousness did I understand
the secret of her genius and power. America is great because she is good,
and if America ever ceases to be good, she will cease to be great." I think
that there is a great deal of truth in that quote.
If we are going to retain our freedoms which
make us a great nation, to be free to live our lives as we desire without
the government watching over us like monitors on a kindergarten playground,
then we are going to have to demonstrate the ability to do what is right
because it IS right, needing no other reason.
If we do not make these choices on our own,
then we can expect to see our freedoms slip away, like sand through our
fingers, and with them, our greatness as a nation. This is a loss that
neither we nor the world around us can afford.
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