The desired competitive culture is therefore responsible for driving the organization into actions that were meant to protect the firm but which later spilled to its collapse. 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. Each of these significe a different piece of the puzzle we are trying to solve about society. When people hear the name Enron they automatically associate their name with one of the biggest accounting and ethical scandals known to date. Accounting malpractices such as “reduced tax payments, inflated incomes and profits and inflated stock piece and credit rating” (Tesfatsion 1). As in any organization, Abstract Motivational theory for instance provides that a management should understand the terms of contracts of its employees under psychological considerations. Enron was involved in American’s largest corporate bankruptcy. The top officials also had to make their way to quick wealth even at the expense of the firm. 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). ⏰ Let's see if we can help you! 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. "Enron: The Smartest Guys in the Room." 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. IvyPanda. That’s in human nature. 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. The documentary was written by Bethany Mclean and Peter Elkind. We can custom-write anything as well! Westport, CT: Greenwood Publishing Group, 2003. This essay on Enron: The Smartest Guys in the Room was written and submitted by your fellow student. Role theory on the other hand provides that an organization recognizes the efforts that employees are putting with respect to their roles. 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. Canadian organizational behavior. 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. Enron made their stock sky rocket through unethical means, and in reality this company kept losing money. 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. 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. Retrieved from https://ivypanda.com/essays/enron-the-smartest-guys-in-the-room/. 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. Enron: the Smartest Guys in the Room. These executives placed their own agendas over the employees and public, and neglected to accept responsibility for ethical downfalls or use appropriate management. Enron Company was characterized by a number of problems in the form or malpractices that led to the eventual collapse of the entity. The type of individuals that ran the company was characterized by a high level of impatience with respect to their targets. IvyPanda, 13 Jan. 2020, ivypanda.com/essays/enron-the-smartest-guys-in-the-room/. 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. 1. The Enron Company was driven into collapse by a number of factors that fuelled its malpractices. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. 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. The theory of moral muteness played a large role in the collapse of Enron. Prior to watching the movie "The Smartest Guys in the Room" and learning in class in depth about the Enron scandal and the counterparts that had hands in it I didn 't know much about it nor the effects it had on the way companies are regulated today. Sims, Ronald. 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). Copyright © 2020 - IvyPanda is a trading name of Edustream Technologies LLC, a company registered in Wyoming, USA. 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. 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. 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. The primary value operating among the traders was greed, money, and how to make profits under any circumstance. It is actually this embezzlement that led to the company’s insolvency (Laws 1). 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. That brings in the ethical issue of conflicts of interest, one of key problems at Enron. The paper analyses the themes that contributed to the downfall of Enron. Web. In each of these research pieces, it is discussed and debated on if groups, networks or organizations affect how society operates. Need a custom Essay sample written from scratch by Consequently the accounts, which were presented by the company, continually attracted more people to the company in the form of investors. And that’s when the collapse begins. Relate what happened at Enron to the fraud triangle and give specific examples for each of the elements (Pressure, Opportunity, and Rationalization). Do not answer them one by one; you should craft a college-level essay with a strong introduction, body, and conclusion, using APA formatting. Cases of unethical behavior, poor organizational culture together with disregard to organizational theories and behavior contributed to the firm fall. Title: Enron: The Smartest Guys In The Room. it took Enron 16 years to go from about $10 billion of assets to $65 billion of assets, and 24 days to go bankruptcy. The firm was characterized by malpractices in its administration that led to embezzlement of funds by top officials and a subsequent accounting cover ups. For full functionality of this site it is necessary to enable JavaScript. "Enron: The Smartest Guys in the Room." IvyPanda. The three main guys leading the pack was Ken Lay, Jeffrey Skilling, and Andy Fastow. 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. The collapse was a result of a long time venture into unchecked practices by the company through its executives. The movie ENRON smartest guys in the room is about one of the biggest corporation corruptions in the United States. 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. Enron Case Review: The Smartest Guys In The Room 975 Words | 4 Pages. In a short period of time ENRON was considered one of the top global trading company for natural gas, commodities, and electricity. 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. 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. That’s in human nature. "Enron" as a word has been used to denote an era of such a company. 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. Organizational theories that help managers into understanding their activities were for example greatly ignored by the organization. McShane, Steven and Steen, Sandra. and secondary groups of community. Ken Lay, Jeff Skilling, and the rest of the executive members of Enron believed they were more intelligent than the rest of the world and tried to play above the rules in order to beat the system, while ultimately backfired. Leaders have great influence in an organization, but policies will not be effective if they do not, Enron: The Smartest Guys in the Room All stakeholders have their own self-interests. . As a result of the deregulations, Enron was able to make biased representations of its records to parties who could be interested in such data. It contains thousands of paper examples on a wide variety of topics, all donated by helpful students. After reading the Ritzer article (Links to an external site.) 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. and secondary groups of community. Write my Essay on The Smartest Guys in the Room. Organizational theory. Personality theory explains that these traits never lead to long term success. Tesfatsion, Leigh. All stakeholders have their own self-interests. It is a story about people, and in reality it is a tragedy. According to the statistic; Enron, the Smartest Guys in the Room. This is IvyPanda's free database of academic paper samples. The company could not afford to compromise its credit rating which would translate into its stock prices and its investor’s attitude. Laws. We utilize security vendors that protect and ensure the integrity of our platform while keeping your private information safe. The paper will then analyze the problems and then look into organizational behaviors and theories that affected the company. Ethical Dilemmas in Management. film reflection. professional specifically for you? These increased supposed investments were embezzled by the company’s executives rather than being put into the company and further misrepresentations made. Enron the smartest guys in the room research paper for admission essay writing service. 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? Enron scandal summary. The company’s money was then channeled by the management to their accounts or those that belonged to their friends of relatives (Tesfatsion 1). 📚 Enron, the smartest guys in the room - essay example for free Newyorkessays - database with more than 65000 college essays for studying 】 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. Barzilai, Kathryn. 2020. As a result, employees followed their unethical behavior (Johnson, 2015). Get in touch Essay & Dissertation Writing services. The Enron Company was faced by a scandal that was caused by the firm’s management. This documentary is entitled Enron: The Smartest Guys in the Room for that very reason. 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 not making profit so they decided to do “future value accounting”. Organizational theory ensures that issues facing an organization are resolved and responsibilities undertaken. Many investors may make their investing decisions based on those false data. This paper will focus on the business ethics issues at Enron that were raised from the documentation Enron: The Smartest Guys in the Room, from cognitive moral development to group norms, etc. 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. ENRON: The Smartest Guys in the Room (Links to an external site.) But a chain of events lead to an enormous shock on the Wall Street and went down in … Apart from intentionally concealing its true financial status, the company also engaged in practices that were fraudulent in nature. You are free to use it for research and reference purposes in order to write your own paper; however, you must. This paper will focus on the business ethics issues at Enron that were. . ENRON quickly grew into a reputable company that generated enormous profits. This paper seeks to discuss organizational theory with respect to Enron Company that was forced into collapse. Essay Details. ‘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. The Enron scandal and moral harzad. Enron Company experienced a crisis to its collapse in the year 2001 which was culminated by application for bankruptcy. In viewing “Enron: The Smartest Guys in the Room” it was clear that all three of these flaws contributed to the demise of Enron, but it was the synergy of their combination that truly let Enron to its ultimate path of destruction. 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. Canada: McGraw-Hill, 2009. If you are the copyright owner of this paper and no longer wish to have your work published on IvyPanda. Enron: The Smartest Guys in the Room I. January 13, 2020. https://ivypanda.com/essays/enron-the-smartest-guys-in-the-room/. Organizational Theory, n.d. Enron was formed in 1985 by Kenneth, 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’s collapse. Print. Finance Laws, 2010. Garsten, Christina and Hernes, Tor. Your privacy is extremely important to us. 13 January. 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. 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. 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. The organizations reward system, or its lack of reward system to its employees was another factor in the resultant problem that was later to be realized. 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