January 13, 2020. https://ivypanda.com/essays/enron-the-smartest-guys-in-the-room/. The Enron Company was driven into collapse by a number of factors that fuelled its malpractices. It also considers steps that Human Resources would have taken given the chance, in addressing the issues that contributed to the collapse of the Company. The documentary, “Enron: The Smartest Guys in the Room,” provides an in depth examination of Enron and the Enron scandal. This documentary is entitled Enron: The Smartest Guys in the Room for that very reason. The … ENRON: The Smartest Guys in the Room (Links to an external site.) In Enron, the problem was an organized scandal that was planned and started by the organization’s founder and then fuelled by the company’s executives. Print. This particularly led to the company’s engagement in partnerships that were not actually at the firm’s interest such as profitability, but to help the management in hiding the true status of the organization. It is a story about people, and in reality it is a tragedy. The company started by ensuring that it was not under regulation by the government. Money that was meant for use on the company’s activities and interests as well as those due to the company’s employees was misappropriated by the company’s top brass. The database is updated daily, so anyone can easily find a relevant essay example. The company’s stakeholders include primary groups of customers, employees, shareholders, owners, suppliers, etc. Organizational Theory, n.d. Retrieved from https://ivypanda.com/essays/enron-the-smartest-guys-in-the-room/. and watching the ENRON film, write an essay on any three of the following questions. The high targets that were set for the workers were at the same time not healthy as they were forced to overstretch their capacities (Sims 150). The action obviously made Enron financial data look good, but at the same time deceived the company’s investors about the real performance. And what a piece of work these men were. There was a vast number of ethical issues raised in the movie “Enron-the Smartest Guys in the Room” but the four I am going to focus on are listed below. There are so many things that went wrong within the organization, from all personal (prescriptive and psychological approaches), managerial (group norms, reward system, etc. After reading the Ritzer article (Links to an external site.) Though unethical values can be checked and controlled easily in an organization that has an ethical top brass that is ready to influence and control ethics in the organization, it is very difficult to first of all detect and then even control such practices if they manifest in an organization’s top management. You are free to use it for research and reference purposes in order to write your own paper; however, you must. (2020) 'Enron: The Smartest Guys in the Room'. What type of assignment 📝 do you need? Motivational theory for instance provides that a management should understand the terms of contracts of its employees under psychological considerations. That’s in human nature. Write a Paper on the movie “Enron: The Smartest Guys in the Room” and the audio “Why Do We Cheat?” (from an episode named “Our Buggy Brain”) Need help with this Essay/Dissertation? We will write a custom Essay on Enron: The Smartest Guys in the Room specifically for you for only $16.05 $11/page. The traders thought that a good trader is a creative trader and the creative trader can find any arbitrage opportunity, prompt, I will be discussing a film called “Enron: The Smartest Guy in the Room”, An article written by Max Weber, “Bureaucracy”, and lastly a piece written by Gwynne Dyer called “Anybody’s Son Would Do”. The Enron scandal and moral harzad. Being said that, the corporation owes all stakeholders the obligations to meet their interests. While employees want secure jobs with high earnings; customers want quality products with cheap prices, which may eventually result in the company and employees’ low income. To read the essay’s introduction, body and conclusion, scroll down. and secondary groups of community. . Enron scandal summary. Apart from intentionally concealing its true financial status, the company also engaged in practices that were fraudulent in nature. "Enron: The Smartest Guys in the Room." McShane, Steven and Steen, Sandra. These practices were for a long time concealed from the public and the company’s stake holders such as its investors. "Enron" as a word has been used to denote an era of such a company. Sims records that the Enron Company was also a victim of its own culture of greed that was formed after the energy industry was deregulated. Though the company was making losses due to its poor investments and embezzlements, there is a possibility that reduced efficiency of the company’s workers must have as well contributed to the firm’s loss making (Garsten and Hernes 110). It was actually this desire that led to the company’s loss of ethical practices as anything had to be done in order to protect the organization’s hidden secrets. Information about losses and debts by the company were not fully reported portraying an untrue status of the company. In each of these research pieces, it is discussed and debated on if groups, networks or organizations affect how society operates. On the contrary, the firm contravened its employees’ psychological contracts by continuously hiking their targets. The movie ENRON smartest guys in the room is about one of the biggest corporation corruptions in the United States. Canadian organizational behavior. film reflection. The paper will look into the issues that faced the company leading to its collapse. What’s your deadline? The top officials also had to make their way to quick wealth even at the expense of the firm. Tesfatsion, Leigh. Enron, once a dormant natural gas pipeline company grew to become the seventh largest publicly-held company in the United States, collapsed in December 2001 because of its “Ponzi” schemes and shoddy business practices. In 1985, ENRON Corporation, was a company that delivers pipeline for natural gas and electricity, while mergering with Houston Natural Gas and Internorth. Canada: McGraw-Hill, 2009. The film does a wonderful job of depicting the downfall of Enron and how the corporate culture and ethics were key to Enron’s fall. New York, NY: Taylor & Francis, 2008. Please provide a causal explanation of their illegal behaviors by drawing from the specific theories of white collar crime motivation to answer the following questions: 1. Sims, Ronald. The paper analyses the themes that contributed to the downfall of Enron. Introduction. The Enron Company was faced by a scandal that was caused by the firm’s management. IvyPanda. Consequently, they were discouraged and probably lost interest in working for the company. Ethical Dilemmas in Management. Enron: The Smartest Guys in the Room shows us how basic human nature does not change, whether it's in the easy fall into killing as a means to resolve disputes, or in the incessant human obsession to acquire for, Introduction The movie is about a crime story and the bankruptcy of ENRON, one of the most successful and even considered as the 7th largest corporation in America, due to the fraudulent acts by the top management. A good ethical leadership could have for example advised against the practices that were going on in the firm or even informed the public of the happenings. Custom «Enron: The Smartest Guys in the Room» Essay Paper essay Thesis Statement In the corporate culture where executives are rewarded huge bonuses on declaring huge profits leads to corporate excesses such as greed and financial misreporting in corporate the corporate world. The Media and Environmental Awareness Essay, Essay about Comparison of Michelangelo8217s and Bernini8217s Davids. Enron is also one of the most celebrated business ethics cases in the century. Review of the documentary Enron: The Smartest Guys in the Room is a documentary that was produced in 2005 as a reflection of the 2003, bestselling book with the same name. and secondary groups of community. If you are the copyright owner of this paper and no longer wish to have your work published on IvyPanda. Read Movie Review On Enron: The Smartest Guys In The Room and other exceptional papers on every subject and topic college can throw at you. Unfortunately, your browser is too old to work on this site. The firm was characterized by malpractices in its administration that led to embezzlement of funds by top officials and a subsequent accounting cover ups. The application for deregulation by the company seems to have been a planned move to help it conceal its malpractices that was to follow the grant. You can use them for inspiration, an insight into a particular topic, a handy source of reference, or even just as a template of a certain type of paper. Iowa University, 2011. The company is being a striking example for a collapse, which was purely due to corporate and individual greed and that today it has lead to strong business problems all around the world. IvyPanda. Many investors may make their investing decisions based on those false data. The company could not afford to compromise its credit rating which would translate into its stock prices and its investor’s attitude. Enron: The Smartest Guys in the Room Synopsis Arie Marie Wilson University of Phoenix Enron: The Smartest Guys in the Room Synopsis Enron was considered the seventh largest company in America valued at seventy billion dollars that went bad. Garsten, Christina and Hernes, Tor. All stakeholders have their own self-interests. Laws. 2020. This paper will focus on the business ethics issues at Enron that were raised from the documentation Enron: The Smartest Guys…show more content… The company’s stakeholders include primary groups of customers, employees, shareholders, owners, suppliers, etc. The company was also characterized with high level of dishonesty in the delivery of its services and goods to its consumers. Essay Details. January 13, 2020. https://ivypanda.com/essays/enron-the-smartest-guys-in-the-room/. Since it’s such leadership that should “create, reinforce or change the organization’s culture” through “attention, reaction to crises, role modeling, and allocation of rewards” among others, a compromising leadership in the organization was a cause to its problem (Garsten and Hernes 107). Web. Title: Enron: The Smartest Guys In The Room. ⏰ Let's see if we can help you! Factor That Led To Enron's Downfall It is revealed that the management was driven by selfish motives that aimed to enrich the top individuals and disregarded the organization and its other stakeholders. Management should therefore ensure that roles are allocated in a manner that is not oppressive because this can cause conflicts among employees. Enron is for instance reported to have been inducing problems in transmission of electricity in order to gain more revenues as it posed to solve the unreal problems. it took Enron 16 years to go from about $10 billion of assets to $65 billion of assets, and 24 days to go bankruptcy. Under the deregulation, the company’s “executives were permitted to maintain agency over the earnings reports that were released to investors and employees alike” (Laws 1). Consequently the accounts, which were presented by the company, continually attracted more people to the company in the form of investors. The actions of Enron’s management that was evidenced in their embezzlement of funds, malpractices and disregard to employees form behavior that led to the collapse of the firm (McShane and Steen 1). 13 January. Reactions such as thoughts, emotions and actions within or around an entity form the behavior. ‘Enron: The Smartest Guys In The Room’ Frauds and financial scandals in the business world were before an Enron’s case and will be after it. And that’s when the collapse begins. Arora The Smartest Guys in The Room BAT4M Patel The Enron Scandal, one of the most controversial events to ever take place in the corporate world. Free Example of Enron, the Smartest Guys in the Room Essay The fast rise of power and downfall of Enron, an energy company with the assets appraised at 111 billion dollars at its height, reflect the most infamous corporate fraud and liquidation in the US history. We can custom-write anything as well! One of the causes of the malpractices was the competitive nature that the company had, or was assumed to be having. The Enron scandal, revealed in October 2001, eventually led to the bankruptcy of the Enron Corporation, an American energy company based in Houston, Texas, and the de facto dissolution of Arthur Andersen, which was one of the five largest audit and accountancy partnerships in the world. This paper seeks to discuss organizational theory with respect to Enron Company that was forced into collapse. The future value accounting just shows a list of future profit that was predicted. "Enron: The Smartest Guys in the Room." According to the documentary Enron: The Smartest Guys in the Room, it seems that one major reasons that led to Enron's down fall was; unethical corporate behavior, Essay about Enron: The Smartest Guys In The Room. Enron’s ride is quite a phenomenon: from a regional gas pipeline trader to the largest energy trader in the world, and then back down the hill into bankruptcy and disgrace. These executives placed their own agendas over the employees and public, and neglected to accept responsibility for ethical downfalls or use appropriate management. The Smartest Guys in the Room 2 February 2017 The purpose of this paper is consider three possible rationales for why Enron collapsed—that key individuals were flawed, that the organization was flawed, and that some factors larger than the organization (e. g. , a trend toward deregulation) led to Enron… The major cause of the collapse of a once prominent company was its selfish leadership that disregarded management’s elements such as organizations theories and behavior leading to inappropriate culture and ethics and practices. (2010). When people hear the name Enron they automatically associate their name with one of the biggest accounting and ethical scandals known to date. Your privacy is extremely important to us. The paper "Enron: The Smartest Guys in the Room" informs about the company Enron that was suffering from huge losses and the financial statements manipulation was just a StudentShare Our website is a unique platform where students can share their papers in a matter of giving an example of the work to be done. This is a review of the movie, Enron: The Smart Guys in the Room. The short term objectives that the organization relied on that for instances forced its workers into unethical measures in order to meet the company’s high standards and the accounting malpractices that the firm employed fell short of professional expectations of management. Organizational theory ensures that issues facing an organization are resolved and responsibilities undertaken. The bright guys at Enron wanted a faster achievement of objectives for the firm as well as for themselves. Need a custom Essay sample written from scratch by Enron: The Smartest Guys in the Room was a documentary film showing the real story of the largest business scandal in the U.S. where top executive officers in Enron Corporation squandered over one billion American dollars … (2020, January 13). ‘Enron: The Smartest Guys In The Room’ Frauds and financial scandals in the business world were before an Enron’s case and will be after it. It contains thousands of paper examples on a wide variety of topics, all donated by helpful students. Web. professional specifically for you? November 10, 2020 | By conclusion about friendship essay | 65 Gregory and which does not mean, however, the enron smartest guys in the room research paper that had a slight fillet. Ask Why? Organizational theories that help managers into understanding their activities were for example greatly ignored by the organization. This is why the firm’s employees were driven to high targets even if they were to break rules. Enron was involved in American’s largest corporate bankruptcy. Personality theory also explains the eventuality of the firm. The company was not making profit so they decided to do “future value accounting”. Cases of unethical behavior, poor organizational culture together with disregard to organizational theories and behavior contributed to the firm fall. January 13, 2020. https://ivypanda.com/essays/enron-the-smartest-guys-in-the-room/. "Enron: The Smartest Guys in the Room." 1. The major issue that faced the company was however the embezzling of funds by the company’s executives. Enron: the Smartest Guys in the Room. That’s in human nature. Each of these significe a different piece of the puzzle we are trying to solve about society. Enron: The Smartest Guys in the Room is a 2006 documentary based on the identically named bestselling book written by Fortune Magazine reporters Bethany McLean and Peter Elkind. The movie entitled “ENRON: Smartest Guys in The Room is based on a book with the same title written by Bethany Mclean and Peter Elkind. It similarly led to adoption of compromised accounting practices that were also meant to hide the true status of the company (Garsten and Hernes 107). CFO Andrew Fastow created financial partnership to hide Enron debt, from which he allegedly collected $30 million in management fees. It is actually this embezzlement that led to the company’s insolvency (Laws 1). This paper will focus on the business ethics issues at Enron that were. Write my Essay on The Smartest Guys in the Room. IvyPanda, 13 Jan. 2020, ivypanda.com/essays/enron-the-smartest-guys-in-the-room/. Enron scandal overview The Enron scandal was a financial scandal involving Enron Corporation and its accounting firm Arthur Andersen, that was revealed in late 2001. But a chain of events lead to an enormous shock on the Wall Street and went down in … Enron was a Houston based energy, commodities and services company. As a result, the unreal profitability status of the company stimulated its then existing and potential investors into putting money in the company. IvyPanda. We utilize security vendors that protect and ensure the integrity of our platform while keeping your private information safe. The folllowing sample essay on Ethical Issues In Enron The Smartest Guys In The Room discusses it in detail, offering basic facts and pros and cons associated with it. Finance Laws, 2010. The primary value operating among the traders was greed, money, and how to make profits under any circumstance. Enron Case Review: The Smartest Guys In The Room 975 Words | 4 Pages. But a chain of events lead to an enormous shock on the Wall Street and went down in history as one of the biggest business scandals. In the film, Enron-the Smartest Guys in the Room, the illegal activities of 4 major characters are revealed: Kenneth Lay, Jeffrey Skilling, Lou Pai, and Andrew Fastow. The environment that was created in the Enron Company that forced it into its desire to competitive was a significant development into the subsequent practices that compromised the business. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. Copyright © 2020 - IvyPanda is a trading name of Edustream Technologies LLC, a company registered in Wyoming, USA. Westport, CT: Greenwood Publishing Group, 2003. Organizations behavior refers to people’s reactions with respect to an organization. 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