in the wake of enron rsquo s collapse the members of enron rsquo s board of director 691653

In the wake of Enron’s collapse, the members of Enron’s board of directors have been questioned and scrutinized to determine what they knew and when they knew it. A Wall Street Journal story reported that Enron’s board contends it was “kept in the dark” by management and by Arthur Andersen—Enron’s longtime auditors—and didn’t learn about the company’s troublesome accounting until October 2001. But the Wall Street Journal reported that according to outside attorneys, “directors on at least two occasions waived Enron’s ethical code of conduct to approve partnership between Enron and its chief financial officer. That partnership kept significant debt off of Enron’s books and masked actual company finances.” Was Enron’s board of directors fulfilling its role in a corporate organization when it waived Enron’s ethical code on two occasions?