untitled/ethics in business

Justification of Sherron Watkins

I obtained a copy of the memo written to Kenneth Lay Chairman of Enron, by Sherron Watkins(1). In reading this memo I applied the elements in the law of agency (2). Ms. Watkins’s concerns were sound in that it later came to a head and was proven. She showed to be a loyal employee, but was raising questions of wrongful deeds, which in turn were criminal. Where as this is a justifiable act, she was not required to hold back confidential information she had come upon.

This memo implies that although criminal activity was apparent, she instead trying to rectify it with Kenneth Lay for the sake of saving the organization. The memo was not threatening by any means, it was simply full of information, and questionable acts that she was concerned would ruin Enron’s name. She listed 4 personnel she believed to be the sole culprits behind the accounting practices.

I believe that in applying the law of agency Ms. Watkins was justified ...