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Enron Corporation - Movie Review Example

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'Enron: The Smartest Guys in the Room' is a Documentary movie based on the scandal of the Company dealing with Energy, Enron. The story portrays the fraudulent activities of the authorities at Enron, which to the infamous collapse of the business…
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Enron Corporation
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R.Preeti 20th April, 2007 Enron: The Smartest Guys In The Room 'Enron: The Smartest Guys in the Room' is a Documentary movie based on the scandal of the Company dealing with Energy, Enron. The story portrays the fraudulent activities of the authorities at Enron, which to the infamous collapse of the business. The main human fallacy depicted, is greed---greed for money and power that drives the managers and the company heads to dip their hands in blood and eventually become bankrupt.
1. From the film, what exactly 'went wrong' and 'why' at Enron
Enron Corporation was listed among the top companies, of the Fortune magazine for six years consecutively, However, all was not as it was portrayed to be. Enron had implemented fraud transactions and accounting deceit. It had filed in erroneous details and accounting figures, keeping the whole world in the dark. Financial corruption has been personified by Enron, which had finally filed for bankruptcy.
2. What role did the traders play at the company and what partly led them to such illegal activity
As shown in the movie, the traders of Enron manipulated the whole setup of transactions. This they did, by reducing power supply and by effecting and increment in the prices for power. They targeted poorer consumers and indulged in such activities, at their expense. The need to beget more money, the greed to possess was the recognized motive behind such activity of the traders.
3. What type of accounting procedure was used that led to the scam
Enron Corporation had employed the 'mark-to-market' type of accounting procedure, wherein they had reported the entire financial year's estimated value, as the profit rather than making periodical assessments of the profit margin, as cash came in. Therefore, the high level of profits reported were untrue and misleading, which can be considered frauds.
4. What excited you most about the culture of the company before all the illegal activity was discovered Would you have enjoyed working in such a high-energy, "eat what you kill" environment had there not been a scam
The fact that Enron had its way up the ladder, in occupying the mantle as one of the world's largest energy producer, is exciting. This is because in any business venture, the people involved envisage reaching that viable spot at the top. Besides this, Enron was known to be an organization that backed innovation, which can be quite interesting and exciting. However, I would not have particularly enjoyed working for an organization like Enron, simply because of the fact that ethics and a conscientious effort play an important part in business, just as the 'number game' does! Whether the whole fraud would become a scandal and a scam or not, I would certainly not prefer working for the organization in spite of the high level of work and the energy that is associated with it.
5. What did you find most upsetting at the end of the film regarding what was
discovered
The upsetting part about the climax of the movie was that fact that Enron was presented as a company that needed less regulation. However, quite contrary to this, if Enron did not deserve any regulations, no company does!

6. What lessons did you take from the film and the facts of Enron that were revealed
The film comes with a strong message for the corporate lobbyists and others in the cat race. It clearly highlights the need to overcome one's greed and focus on corporate ethos. One cannot take away the fact that growing as a company is an uphill task. However, when the company follows the footsteps of Enron, in achieving its end by unfair means, it only leads to scandals and a reverse of the success achieved. Therefore, pristine perseverance combined with conscientious sincere efforts need to call the shots!
References
http://en.wikipedia.org/wiki/Enron:_The_Smartest_Guys_in_the_Room Read More
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