Backstage Pass: Ep. 28 - The Ethics Trap Every Leader Faces with Andy Fastow
andy fastow bio
Andy Fastow was the Chief Financial Officer of Enron Corp. from 1998 – 2001. In 2004, he pled guilty to two counts of securities fraud, and was sentenced to six years in federal prison. He completed his sentence in 2011, and now lives with his family in Houston, Texas. Andy currently consults with management, directors, attorneys, and hedge funds on how to best identify potentially critical finance, accounting, compensation, and cultural issues.
His training sessions focus on risk in the “gray zone”, where decisions that may technically be allowed give rise to risks that are not properly considered. He helps attendees better understand the limited role of auditors and attorneys, how technically-correct but ethically-challenged decisions may be interpreted by the market, and the steps they can take to become more self-aware and able to identify, price, and manage these risks.
Andy is the only Enron executive that has taken full responsibility for his actions and has both repeatedly and publicly expressed remorse. In addition to serving his prison sentence, Andy forfeited far more money than he ever earned at Enron. He is credited with being the individual most responsible for helping recover $6 billion for Enron shareholders.
His sessions are also typically awarded 1 ½ hours of CLE and CPE Ethics credits.
show notes
On this episode of Backstage Pass, Gail Davis is joined by Andy Fastow, the former CFO of Enron, to discuss about ethics, leadership, and decision-making in business. Andy shares his journey of taking responsibility for his role in the collapse of Enron, the importance of understanding risk in the gray areas of business, and how corporate culture plays a crucial role in ethical decision-making. He emphasizes the need for leaders to ask critical questions and to foster an environment where risks are identified and managed effectively. The discussion also touches on the relevance of the Enron case in today's business landscape and the importance of continuing education in ethics and risk management.
Key topics in this episode include:
Andy Fastow takes full responsibility for his actions at Enron.
The importance of understanding risk in the gray zone.
Corporate culture is crucial for fostering ethical decision-making.
Loopholes can lead to unethical behavior despite following the rules.
Human nature often leads to overlooking hidden risks in business.
Risk assessment should take precedence over mere compliance.
Continuing education in ethics is vital for professionals.
Andy encourages open dialogue and questions in corporate settings.
Visit gdaspeakers.com to learn more about bringing Andy Fastow to your next event!