ws10.1108/wsWork Study0043-8022Emerald Group Publishing Limited10.1108/ws.2003.07952cae.004e-non-articleSecondary articleMedia newscat-MSOPManagement science & operationscat-MSOManagement science/operations researchcat-WSSMWork study/scientific managementHow Companies Lie: Why Enron is Just the Tip of the Iceberg01062003523© MCB UP Limited2003peer-reviewednoacademic-contentyesrightslinkexcludedHow Companies Lie: Why Enron is Just the Tip of the Iceberg

How Companies Lie: Why Enron is Just the Tipof the Iceberg

A. Larry Elliott and Richard J. SchrothNicholas Brealey£12.99ISBN:1 85788 3225

Entrepreneurs are not dead. They have just switched to writing managementbooks. Hot on the heels of the recent corporate scandals has come a flood ofbooks, trawling through the wreckage to bring us pearls of wisdom and importantlessons. These have pushed aside some of the more inspirational messages we wereperhaps getting a little too used to. Now, we are given lessons on business sinsrather than virtues.

This is a reasonable analysis of the Enron situation; well, I suppose Ishould say plausible since the truth is certainly not out yet – and perhapsnever will be. We do know that "bad" things were done – both tocreate the situation and in trying to avoid coming out into the open. Much ofthe rest is reasonable but speculative.

Elliott and Schroth argue that the primary responsibility for the spectacularcrashes we have seen, and the resulting crisis of confidence within the USinvestment community, lies firmly with boards of directors and management teams.Most of us would probably have got that far on our own!

There is some interesting material in here. It does not however hang togetheras a coherent argument arising from the situations it purports to analyse. As abackground essay on the perils of complex accounting schemes it has merit but wehave to wait for the "real" book on the Enron scandal – if we everget it. Perhaps the sum total of the words written post-Enron will make somedifference – make US directors and executives think about their real roleand responsibilities. If this book is a minor contribution to the changesnecessary, it will not have been in vain.