BusinessCompany NewsUK plc still facing Enron threat

UK plc still facing Enron threat

More than four out of five company chiefs believe the UK is still vulnerable to an Enron-style accounting scandal, contradicting views that such a scandal could never happen here.

Link: ‘Enron’ row rages over BBC accounts

Only one in 14 companies said they were confident that a new accounting scandal will not hit UK plc, a survey conducted by MORI for mid-tier firm RSM Robson Rhodes found.

The survey, conducted on chairmen, chief executives, and financial directors of 150 companies, also found that one third believe the official response to Enron will ‘greatly improve corporate governance.’ Only 27% say the new rules will enhance the running of companies whilst one in four remain undecided.

Tom Lawton, head of audit and business assurance at RSM Robson Rhodes, said: ‘What his research clearly shows is that complacency is the enemy of good corporate governance.

‘Businesses must foster a culture of integrity from the board room down, which is a real challenge for larger corporates with more diffuse management structures.

‘However, ultimately the Board is responsible to shareholders and other stakeholders for the proper stewardship of the company, and the buck stops with them.’

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