KNOCKING DOWN THE BOARDROOM DOOR: Labor Takes on Enronization

Important reforms, however partial and halting, have been won with the passing of accounting reform legislation in Congress, new rules governing corporations and capital markets at the Securities and Exchange Commission, and new requirements of firms listing their shares on the New York Stock Exchanges. What we witnessed at Enron, WorldCom, and the others was a pattern in which corporate money flooded the coffers of elected officials to create regulatory black holes where they could operate out of reach of public authorities. Sound corporate governance assures that the interests of managers are aligned with those of the company and its constituents, and guides the strategic allocation of productive assets and the formation and execution of effective business strategies.