The smartest guy in the room - the enron documentary - Essay Example

Comments (0) Cite this document
Arguably, the internal and external environments of every business organization are always focusing on ensuring that the management practices pursue the…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER95.3% of users find it useful
The smartest guy in the room - the enron documentary
Read TextPreview

Extract of sample "The smartest guy in the room - the enron documentary"

The Smartest Guy in the Room - The Enron Documentary Business ethics entails the development of appropriate and socially acceptable phenomena in running business processes. Arguably, the internal and external environments of every business organization are always focusing on ensuring that the management practices pursue the intended purposes. Therefore, the practice of ethics prevails in business after the public is certain that the company’s performances aim at achieving sound objects without fraudulent practices (Perrucci and Earl 320). Enron’s unethical practices that further embraced deregulation approaches on its stock’s prices influenced the financial industry negatively. Precisely, the company’s top management inflated the stock prices and amassed overwhelming capital investments from the shareholders while the company was running into bankruptcy. After the company collapsed, Enron’s shareholders were subjected to reduced per capita income, which further influenced a reduction in the country’s GDP (Gross Domestic Product).
In order to prevent the occurrence of inflated stock prices that in turn influenced shareholders to invest in fraudulent companies, the government should issue strict regulations. The importance of this approach is to ensure that the business environment is informed about every company’s financial prospectus, statement of profits and losses, and its overall performances in the market (322). Eventually, every company will only present actual information to the market and the shareholders’ responses will in turn affect increase or decrease in the stocks’ prices. Considering such a regulation is vital towards financial development and contentedness of the investors (325). This will serve for the benefit of the country’s economic environment since corruption and fraudulent company practices will be diminished.
Enron’s top management is depicted in the movie as a group driven by the greed to earn and resuscitate the company to a profitable position. Therefore, the company’s accounting department embarks on the use of the “mark-to-market” accounting tactic that aims at deceiving the investors’ population to acknowledge its performance through the highlighted bogus profits (Moeller 34). This accounting tactic enabled the company to forecast on its probable profits in a ten-year period and establish them on their current profit statement as though the Enron had made them. The tactic is fraudulent and should not be used in business organizations.
Enron’s CEO Mr. Jeffrey Skilling and Kenneth Lay are depicted in the movie as the people responsible for the company’s inflated stock prices. Essentially, the scenes show that the two characters devised precise and accurate tactics to ensure that not even the company’s personnel had knowledge on the financial status and profit base of the company. Therefore, the internal and external environment were not aware of the actual financial status of the company hence Lay and Skilling were capable of manipulating the essential entities that in turn led to inflated stock prices and a subsequent increase in demand (37).
Lay and Skilling were devoted to ensuring that Enron prospered over other companies in the country and its stocks were the most priced. Through the provision of quarterly financial statements, Enron’s stocks influenced a continuous increment in the population of investors as they considered it the most profitable company in the market, unknown to them that every report was bogus and implemented for fraudulent purposes. Lastly, the management provided news to the external public that Enron engaged in profitable businesses that included the production and sale of energy and natural gas (41). These tactics led to continuous increment in the shareholder population.
Work cited
Moeller, Robert R. It Audit, Control, and Security. Hoboken, N.J: Wiley, 2010. Internet resource.
Perrucci, Robert, and Earl Wysong. The New Class Society: Goodbye American Dream?Lanham, Md: Rowman & Littlefield, 2007. Print. Read More
Cite this document
  • APA
  • MLA
(“The smartest guy in the room - the enron documentary Essay”, n.d.)
Retrieved from
(The Smartest Guy in the Room - the Enron Documentary Essay)
“The Smartest Guy in the Room - the Enron Documentary Essay”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF The smartest guy in the room - the enron documentary

Video Case Study

...?MGT 4302 Ethics in Organizations Video Case Study ______ __________________________________________ Enron: Smartest Guys in the Room With regard to the film, identify examples of ethics concepts from Chapters 7 and 8 including: 1. “Multiple ethical selves” Multiple ethical selves is the idea of being in the position of playing conflicting roles. In the movie Enron: Smartest Guys in the Room, Jeff Skilling and Ken Lay—the president and CEO of Enron respectively-- had multiple ethical selves. These two men were consistently playing dual roles of responsible business men and gambling...
3 Pages(750 words)Essay

Enron The smartest Guy in The Room Movie

...?“Enron The smartest Guy in The Room” movie very well sketches the entire history of Enron, from its foundation till downfall. The chain of events from the Enron’s rise to final days has very well been portrayed in the movie. The artists are former employees of the corporation, as well as reporters who give an account of the mannerisms of top heads involved in the fraud and their inherent strengths and weakness .They give their own interpretations about the main incidents, which led to the bankruptcy of the corporation. ( ) It's more than a movie - it can be termed a case by case in-depth analysis of a giant corporate...
2 Pages(500 words)Essay


...Enron scandal # submitted Crimes are not a new thing in this world that we human beings are living in. Of all thecrimes that I have come across in my entire life, I have to admit that the Enron scandal was one that I could not relate to directly. It was something that I needed to read more about as it was a scandal that took place in the business world and it took me longer than usual to understand the gravity of the situation that took place in America. In my opinion, the government was not expecting too much from the companies in the USA as the event of Enron scandal had shown this to be very much true. It was only after the scandal that the government decided to do something about the...
1 Pages(250 words)Essay

Summary of the documentary film ( Control Room )

...Control Room The documentary d Control Room came into existence during the year of 2004 (Noujaim, 2004). The documentary focused on the relationship between Al Jazeera and CENTCOM (US Central Command) and other media organizations that were indulged in the media coverage of the US attack over Iraq during 2003 (Noujaim, 2004). The documentary was a work of an Egyptian Film maker named Jehane Noujaim and the distribution rights of the documentary were assigned to Mangolia Pictures (Noujaim, 2004). The characters that who were a part of the documentary included Josh Rushing who works as a press officer for CENTCOM, a...
3 Pages(750 words)Essay

Control Room is a Documentary Film

...Control Room is a Documentary Film Looking back on what happened during the time of the United States and Iraq’s war, “Control Room” made a blast of remembering the yesterday and showing what really happened. Control Room is a documentary film which provides a balance view of Al-Jazeera’s presentation of the second Iraq war to their worldwide Arab audience, and in so doing calls into question many of the prevailing images and positions offered up by the U.S. news media. The film provides a clear view of the happenings during the United States and Iraq’s war days and what are the real things behind those rejoicing voice of the Americans. The film literally revealed the things that happened during the United States and Iraq’s war... reasoned...
2 Pages(500 words)Essay

-Enron: The Smartest Guys in the Room, 2005, a documentary

...Enron: The Smartest Guys in the Room Enron: The Smartest Guys in the Room Enron: The Smartest Guy in the Room (2005) is a documentary film directed by Alex Gibney. The film is based on the largest business fraud in the American history. The film is based on the best selling book 2003, ‘Enron: the Smart Guys in the Room’ by Behany McLean. The film portrays the fraud of the Enron Company that influenced American market. This document aims to study the...
4 Pages(1000 words)Assignment

Enron: The smartest guys in the room

... The Smartest Guys in the Room The Smartest Guys in the Room is a cooperate documentary about the corrupt commercial practices of the Enron corporation. This documentary stars John Beard, Tim Belden and others. It is directed by Alex Gibney. The Smartest Guys in the Room infers a leader as an individual who dominates a specific position and is able to exercise control and influence over the others. Jeff Skilling, the CEO in this documentary is depicted as the leader according to Bethany, who describes him as a one who empowered them and inspired their work force as employees. In addition, Skilling is further depicted as the leader who motivated the employees with his intelligence, made the employees believe that they are the best... of...
1 Pages(250 words)Assignment

Enron a market economy. Harvard International Review, 25(3), 76-82. McLean, B. & Elkind, P. (2003). The Smartest Guys in the Room. New York: Penguin. Mekay, E. (2003). Enron used U.S. government to bully developing nations. Retrieved from Nelson, K.K., Price, R.A. & Rountree, B.R. (2008). The market reaction to Arthur Andersens role in the Enron scandal: Loss of reputation or confounding effects? Journal of Accounting & Economics, 46(2-3): 279-293. Niskanen, W.A. (2005). A Crisis of Trust. Lanham, MD: Rowman and Littlefield. Public Affairs Television. (2014). Enron and other Corporate...
20 Pages(5000 words)Research Paper

Answering the questions after you watched the movie "Enron: The Smartest Guys in the Room"

...Ethical Analysis of the film Enron: The Smartest Guys in the Room What are the leadership problems presented in this film? The main leadership problem of the company was that it completely ignored the fact that its actions will lead to the collapse of the company and multi-million dollar losses of the companys investors. The company’s leadership saw its main task to use the features and image of the company for their personal gain, while this policy led to the destruction of the company. The companys management exercised risky actions, which could not lead the company to success. 2. What are the ethical problems presented in the film? Ethical issues presented in the...
4 Pages(1000 words)Movie Review

Enron: The Smartest Guys in the Room

... Enron: The Smartest Guys in the Room Question After Enron was declared bankrupt, the three company directors were summoned to a hearing by the congress. The interrogation revealed that the company had been causing artificial shortages for energy in order to hike prices. Besides, this would make the company’s stock more marketable. In his testimony, Skilling, who was one of the directors, stated that all his actions were meant to safeguard the shareholders’ interests. In fact such assertions were wrong since they were against the company policies and the stakeholders interests. Yet, Skilling acted ultra vires when he manipulated the financial statements to appear as if the company was making huge profits. However, the audit showed... of such...
2 Pages(500 words)Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic The smartest guy in the room - the enron documentary for FREE!

Contact Us