Letters to the Editor

February, 2003

YOUR ARTICLE “A Season of Scandal” in the November 2002 issue jumps directly into the cesspool of drivel portrayed by other media. Over the past few years, the press has reported on company after company as being corporate criminals and awash with corruption and scandal. Accusations are based on the foundation that corporate America is the root of evil in our society. Attempts at explanation and/or defense by the accused are put down as not credible and self serving. How ever could these “scoundrels” even consider defending themselves, as we, the people, find them guilty in the people’s court of the press?

Arthur Andersen was put to its knees by the presumed guilt of one or two (long before legitimate guilt had been either evaluated or assessed). AA was and always had been an excellent firm with top-notch people. Now their ex-employees go with their tails between their legs for having ever been associated with corporate scoundrels. They fear even putting AA on their resumes.

Corporations are the backbone of America, providing approximately 70 percent of Americans with their income and livelihood. More than 50 percent of our workforce is in small and mid-sized companies where people work hard and straight for their lives and companies. Many officers and founders lose their entire life savings and file for bankruptcy having given many Americans employment for perhaps but a brief time. This cannot be a sign that corruption is endemic.

The American press is killing our country. Why have national headlines from minimally educated reporters with scant evidence become the basis of guilt? As for the GSB, yes, analyze and criticize and review, but somewhere, sometime, how about encouragement of business, support of the American dream, not just the preponderance of the bad stuff?

FRED W. PATTON, MBA ’69
Oakland, CA

THE NOVEMBER ISSUES of both magazines [Stanford Business and Stanford] dealt with “A Season of Scandal” and “Ethics in the Wake of Enron.”

In these articles a number of distinguished professors expressed their learned views. As a singed Enron investor, the absence of any comment on the role of retired GSB dean and professor of accounting Robert Jaedicke was conspicuous. After all, Mr. Jaedicke did chair Enron’s audit committee. I admit I did not understand Enron’s accounting but banked, mistakenly, that Mr. Jaedicke did. Oops.

NEEL HALL, AB ’54, MBA ’59
Tucson, AZ

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