Heskett Column - Will the Societal Effects of Enron Exceed Those of September 11? SUM UP

The Relative Effects of Enron and September 11: Too Soon to Tell?

The question of the relative societal effects of the Enron case and the September 11 attacks elicited some of the most heated responses received to date. But where there was heat, there was not necessarily fire—that is, if clear direction and agreement represent fire.

Respondents were nearly evenly divided on the question. However, several arguing for the relative importance of September 11 expressed concern that the question was even asked. Keith Sawyer remarked, "Rubbish... As Bush says, this war has no end in sight, and we have scarcely seen the beginning." Joe Hill's remark was typical of several, when he said that the question is "not only ridiculous, it is offensive." Martin Edie added, "There is simply no comparison between these two, except as an intellectual exercise; one that, in my opinion, is not only insensitive, but not very well considered."

Among the many commenting on the Enron case, nearly all felt that change was warranted but few believed that significant change would come from it.

— James Heskett

On the other hand, remarks typical of those arguing for the relative importance of the Enron scandal included: "While terrorism tends to rally folks to patriotism, corruption does just the opposite, and that damage is severe and incalculable...a meltdown of confidence in our system is potentially far more devastating." (Mark Montgomery); "The most striking difference between the Enron scandal and the terrorist attack ... is the realization that the destabilizing effects of the Enron scandal come 100% from within our own society..." (Bob Donlan); and "The most significant difference I see is the response of our government. We should treat the Enron executives as aggressively as we have al Queda" (Mike Donahue).

Among the many commenting on the Enron case, nearly all felt that change was warranted, but few believed that significant change would come from it. The general sense of these comments was that investors, by punishing companies with impossible-to-penetrate and hard-to-understand financial accounting, hold the greatest hope for change. But these very investors were generally characterized as having both short memories and a high level of greed, not very promising characteristics for leaders of change. As Stephen Robbins put it, "History doesn't suggest that much will happen except perhaps a best-selling novelization and a major motion picture starring Richard Gere as Lay."

The sense of most comments received was that while the intent of the perpetrators of the September 11 attacks bore no resemblance to that of those behind the Enron scandal, the damage that each did to levels of trust in our society was substantial. As a result, their implications for us are of comparable magnitude, suggesting that Enron be of more than passing interest. If so, what kinds of responses, especially to the Enron case, are warranted? Who should make them? What do you think?

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Will the Societal Effects of Enron Exceed Those of September 11? | Jim Heskett's Original Column