These acts of corporate rapaciousness make it clear how easily ordinary citizens can be hurt when executives try to make money 'creatively' by moving money rather than producing a product or fulfilling a real service. Enron is often mistakenly called an energy company, but it was really more of a speculative entity. This is another illuminating aspect of the documentary for those viewers who may only know about the Enron debacle through the popular media. The company existed only to show profits on its balance sheet, and to do so it tried 'every trick in the book' to keep its stock price high.
One of the most shocking revelations is how the Enron Company single-handedly created the California energy crisis: in case anyone is wondering why nothing has been said about the crisis since Enron folded, is because there never was a real crisis. The documentary has conclusive proof that Enron encouraged California power plants managers to shut down the plants, to drive up the price of electricity, indifferent to the personal suffering and profit losses for untold numbers of people that this caused. The current market melt-down is testimony to how easily fortunes can be won and...
Once again, cavalier behavior by executives is motivated by greed and arrogance that they can 'beat the system.' But a viewer of today might wish to exclaim -- why has this happened yet again, this time in the real estate and the credit markets? Why is there not greater surveillance and regulation of corporate activities?
Perhaps one of the answers is the fact that human nature has not changed. Not only are human beings greedy, but they also have a tendency to do what they are told, if everyone else seems to be 'going along with the flow.' At the highly competitive workplace of Enron, because unethical and illegal behavior was encouraged and praised, employees complied. The need for whistleblowers and a vigilant media to stand up for what is right is also important to ensure that greed does not run rampant. Newspapers and documentaries like "The Smartest Guys in the Room" enforce checks upon the financial system and are just as vital to our nation's future financial health as is more government regulation of speculation in the financial markets. The challenge is to make the public understand and care about what is being wrought, a challenge that this film meets successfully. It is a work of bitterly humorous entertainment as much as it is informative.
Enron: The Smartest Guys in the Room." Directed by Alex Gibney.…
Enron (Movie) analysis The Smartest Guys in the Room-Enron The film is pitched around the America's seventh largest corporation that was in charge of distributing electricity and natural gas. The company was worth over 70 billion dollars in assets built over years with over 22,000 employees, it became bankrupt within 24 days. The employees lost their jobs and medical insurance, 1.2 billion in retirement benefits while the retirees lost 2 billion dollars
Accordingly, arrogance is the only word to describe such a goof. KPMG served as the independent audit firm of several of the largest sub-prime mortgage lenders. Identify the advantage and disadvantages of a heavy concentration of audit clients in one industry or sub-industry. Citation: Danos, Paul. Eichenseher, John W. "Audit Industry Dynamics: Factors Affecting Changes in Client Industry Market Shares. Journal of Accounting Research." Institute of Professional Accounting. JSTOR.ORG. Vol. 20.
Microeconomics Enron Corporation is an example of one of the largest corporate scandals in the history of the United States. Given a series of corporate mismanagement, Enron is regarded as a shocking example of corporate corruption in the modern business world. The company took 16 years to increase its assets from 10 billion to 65 billion, which was significantly reduced in 24 days (Gibney, 00:00:38-00:00:47). Enron’s corporate scandal has been the
Enron Leadership Enron collapsed very quickly in November 2001, and its failure should have been a warning to serious dysfunctions in the entire corporate and financial system, but this did not happen. Its executives admitted that they had falsified its records going back for at least five years, although in reality they had been doing so since the 1980s. When the company filed Chapter 11 bankruptcy it laid off over 20,000
Enron Lessons from Enron Pride goes before the fall, so they say, and there is certainly a high degree of hubris present in "the smartest guys in the room." As it is pointed out early in the film by Amanda Martin-Brock, former executive at Enron, "The fatal flaw at Enron, if there was one, you say it was pride -- and then it was arrogance, intolerance, greed." Pride, intolerance, and greed may
Ethics and Leadership Failures: The Enron Case Gibney's 2005 documentary film Enron: The Smartest Guys in the Room reveals some of the main ethical weaknesses in an unbridled neoliberal capitalist market system. Barely addressing environmental and social justice issues, the filmmakers instead choose to focus on organizational culture, leadership, and ethical decision making within the corporation. The film illustrates the core concepts of business ethics and shows how executives shape company