case summary 1

write two pages of backgroud and ethical issue summary of the case. please follow the outline down below.
1. Background:
Report from Goldmans meeting with Jeff Skilling: meeting failure
Jeff Skilling(client): OGA to MtM
– MtM is a common practice
– more accurately reflect current worth and more consistent
Goldman(AA): oil and gas transaction
– Enron is a oil and gas company not dealing with financial instruments
– SEC is not going to approve
-EFs version of MtM is beyond practise
Goldmans failure in established that:
-EF was not comparable to a Wall Street firm
-EF could not unilaterally choosing an accounting method
-Goldman hoped to use the Gas Bank transaction to illustrate the risks with MtM
Ethics issues in the meeting
2. A clear statement of the ethics issue including why it deserves to be considered exceptional. This statement also requires definition of a boundary condition an ethically acceptable outcome to the concrete business situation.
– Conflict between Goldman and its client EF
1. EF- change to MtM accounting system
2. Goldman- maintain to use OGA; certain that the SEC would not permit an Enron unit to completely alter its accounting system without securing the commissions prior approval.
– Need flawless communication strategy with his partners
1. They might stop listening and start thinking about what they would have to do to salvage the situation
2. Start thinking about how to placate a valued client
3. Begin thinking about replacing Goldman as the engagement partner
4. Discussion may turn toward finding an answer to satisfy Skilling before he came to Chicago
5. Try to minimize the damage by visualizing how AA might retreat from the position Goldman had staked out during the meeting.
– Best ethical option v.s. Best business option
– Boundary condition- minimum ethically acceptable outcome- leave it to SEC to decide
a. If SEC approves EF to use MtM it can be OK for AA too.

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