But the idea is to put the fear of god in the CEOs
Reader comment on: Cost-Free Job-Creating Idea No. 5
in response to reader comment: Just the internal controls or all of it?
Submitted by Lyle (United States), Sep 15, 2011 21:29
The idea is if the CEO and CFO sign these statements they will put in place a culture of doing the right thing. It's clear that a number of CEOs starting with Enron and WorldCom did not place a culture of doing the right thing in their companies. Corporate culture starts with the CEO, is he a good judge of character of the folks he appoints to positions. The statement is partly to make the CEO think about if the person is a yes man (I think Mozillo for example got rid of someone who stood up to him in favor of a yes man and Countrywide partly collapsed because of it, or see reports of Merrill Lynch where ONeil fired those who said the company was on the wrong track).
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