p.153.ISBN1-59184-008-2 22 McCoy, Ke vin (2005-12-28). I believe Enron’s later difficulties would have been avoided if the executive team had disciplined the whole organization in time. 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. It'd become one of America's largest in just a decade with accolades like "America's most innovative company." of service. The board is at fault for permitting the suspension of Enron’s own code of conduct to permit the conflicts of interest inherent in the off-books corporations controlled by Fastow. and secondary groups of community. Sorry, but copying text is forbidden on this website. But, by the end of 2001, the Enron scandal's ethics quagmire shattered that illusion as $74 billion was lost and lives were destroyed in the aftermath. According to the Texas State Historical, Enron's Ethical Dilemma: I just finished watching Bethany McLean and Peter Elkind's's movie, ENRON: The Smartest Guys in the Room. If they listened to him they might have lost the deal with Enron, but in the end they lost it anyway and lost millions along with it. However, in this case they did not even represent the shareholders well and particularly not the employees who were shareholders. He was the one who came up with the idea that the company didn’t really need any “assets. People did acknowledge wrong-doings within the organization; however, little or no action was taken to change the situation as well as to set the disciplines for future reference. The authors and the movie deserve all the credit they are receiving. Ethical and moral issues have received substantial focus in the modern society because of the recent cases in which huge corporations with big profits and earnings have faced bankruptcy. The Smartest Guys in the Room: Management Lessons from Enron's Leaders At Paperap.com you will find a wide variety of top-notch essay and term paper samples on any possible topics absolutely for free. The mordant documentary Enron: The Smartest Guys in the Room cleverly deconstructs the men who reminded us of the dark side of the American dream. Literature review ………………………………………………………………, Introduction Once people were hired, it was an “up-or-out” culture. Art Anderson, Ken Lay and all of the other executives did a number of unethical things which ultimately brought down Enron and affected thousands of employees and their futures. As well as where improvements could have been made to improve organizational trust and ethical culture before Enron’s collapse. With Kenneth Lay, Peter Coyote, John Beard, Barbara Boxer. Directed by Alex Gibney, the film looks into the collapse of Enron Corporation that led to criminal trials of the company’s top directors. Abstract……………………………………………………………………………..…...4 1. There is a general impression that Enron was a good corporation that went bad. 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 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. 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. CFO Andrew Fastow created financial partnership to hide Enron debt, from which he allegedly collected $30 million in management fees. Even Watkins, the whistleblower, described Lay as a man of integrity. Prescriptive Reasoning Approach According to the documentation, those Enron people who faced ethical issues used different prescriptive reasoning approach to resolve their dilemma. The ethical issues is generally Profit or Ethics; the ethical principles is commonly objectivity and integrity; common ethical theory is ethical egoism; person affected by decision is normally all of the members; and imaginative solutions that rewarding half of the income, 1. It tells the story of how Enron rose to become the seventh largest corporation in America with what was essentially a Ponzi scheme, and in its last days looted the retirement funds of its employees to buy a little more time. Actually, I believed they were the best in the arena. A church spire wrapped in a banner reading “Jesus Saves” peeks into frame. 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. (2005). That was the reason why Andrew Fastow, the hot shot risk taker, was one of Lay’s favorites. (Nothing is more hateful to wisdom than excessive cleverness. The board of directors was not attentive to the nature of the off-books entities created by Enron, or to their own obligations to monitor those entities once they were approved. Ethical Issues in Business and Society Professor Franklin Bridge IDIS 302.004 Take Home Assignment – Enron: The Smartest Guys in the Room Instructions: Write a few sentences or more on each of the following questions. ENRON ACCOUNTING FAILURE AND ETHICAL ISSUES When two Enron energy traders in New York made massive fraudulent energy trades and drew off company money to their own accounts in mid -1980s, the company didn’t take the chance to set up a standard. In its epilogue, The Smartest Guys in the Room makes the final point that those at the center of the scandal had a fundamentally narrow and legalistic view of ethics. Art Anderson, Ken Lay and all of the other executives did a number of unethical things which ultimately brought down Enron and affected thousands of employees and their futures. Enron: The Smartest Guys in the Room is a 2005 American documentary film based on the best-selling 2003 book of the same name by Fortune reporters Bethany McLean and Peter Elkind, a study of one of the largest business scandals in American history. Organizations or companies, which operate in the corporate realm, are bound and regulated by corporate ethics and values. ... We will write a custom Essay on Enron: The Smartest Guys in the Room specifically for you! Merrill Lynch’s main focus should have been their employees and their investors, not solely Enron. 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. Enron dives from the seventh largest US company to bankruptcy in less than a year in this tale told chronologically. Stakeholders and Conflicts of Interest Modern corporations like Enron usually have multiple stakeholders with often conflicting interests and expectations. Words. Enron filed for bankruptcy on December 2, 2001. 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. Art Anderson, Ken Lay and all of the other executives did a number of unethical things which ultimately brought down Enron and affected thousands of employees and their futures. Here you will also find the best quotations, synonyms and word definitions to make your research paper well-formatted and your essay highly evaluated. I'm not inclined to say this is the reason the film is not only entertaining and informative even to those who lack knowledge of business practices, but it probably does contribute to its effectiveness. Business. words(double Enron: the Smartest Guys in the Room 1989 Words | 8 Pages. This Enron case study presents our own analysis of the spectacular rise and fall of Enron. 1) Who are the stakeholders affected in the Enron case, and why 2) what are the ethical issues involved in Enron any help would be much appreciated (2019, Dec 07). Re: Enron: The Smartest Guys in The Room Enron: The Smartest Guys in The Room is a movie about one of the US largest corporations, Enron, that went bankrupt in 2001. Professor Louis Benedict T he title of Alex Gibney's Enron: The Smartest Guys in the Room is ironic. The company’s stakeholders include primary groups of customers, employees, shareholders, owners, suppliers, etc. With the leaders known to be wise and smart, the workers, Enron – Ethics and Law Essay spaced), Paper type: Essay , The movie starts with the story of Enron Corporation founder who was the chief executive officer of Houston Natural Gas, Kenneth Lay. Apparently it has a good chance to win the Oscar for best documentary of the year. Introduction ENRON ACCOUNTING FAILURE AND ETHICAL ISSUES Enron is an example of corporations that have faced bankruptcy in the recent past because of the numerous problems it had with federal and state governments for manipulation of financial statements. 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. On February 12, 2001, Skilling was named CEO of Enron, receiving $132 million in a single year. 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 paper will look into the issues that faced the company leading to its collapse. In its trail, investors were getting rich, employees found reward and satisfaction, and the community it called home thought it, The Enron Accounting Scandal of 2001 As an energy broker, Enron provided a service by allowing producers to negotiate a certain price while Enron took the risk that prices would fall below what it bought energy. There are many accounting scandals that have occurred throughout United States A hypocritical leader talks persistently about integrity and ethical values but then engages in unethical conduct, encourages others to do so either explicitly or implicitly. The Enron Jeffrey Skilling and Ken Lay knew was one they kept to themselves and a few chosen colleagues. The senior executives believed Enron had to be the best at everything it did and that they had to protect their reputations and their compensation as the most successful executives in the U. S. When some of their business and trading ventures began to perform poorly, they tried to cover up their own failures. Take Andrew Fastow as an example, he might not start all the fraudulent financial activities in the first place; however, he decided to do so in order to please the boss, when Ken Lay wanted to see neat financial disclosures. Corporate fraud, greed, corruption, what company comes to mind when you hear those words? 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. How did the structure of Enron impact the human behavior of those who were employed by the company? Enron: The Smartest Guys in the Room 1884 Words | 8 Pages. At over $60 billion being scammed away from the public, they were the biggest fraud in history. Again, to understand the Scandal better I’ll recommend you to read the book written on it, The Smartest Guys in the Room. ENRON ETHICS AND LAW ESSAY. Many of Enron’s recorded assets and profits were inflated, or even fraudulent and nonexistent. 2 For a far deeper dive, check out the book "Enron: The Smartest Guys in the Room" by Fortune Magazine reporters Bethany McLean and Peter Elkind, or watch the fantastic documentary of the same name by director Alex Gibney. T he title of Alex Gibney's Enron: The Smartest Guys in the Room is ironic. October 17, 2014 Its core business was buying energy at a negotiated price and later, selling the energy when prices increased. One of the largest ethical and legal business cases in a very long time has involved Enron. He created and led Enron to the seventh largest company in the US. It meant that such behaviors were allowed at Enron. Enron: The Smartest Guys in the Room—Using the Enron Film to Examine Student Attitudes towards Business Ethics January 2009 Journal of Behavioral and Applied Management Art Anderson, Ken Lay and all of the other executives did a number of unethical things which ultimately brought down Enron and affected thousands of employees and their futures. Situational Factors Arguments above suggest that at the individual level, there are so many “bad apples” at Enron that caused the organization’s collapse. On the other hands, Sherron Watkins, the whistleblower, chose the consequential and virtual ethics approaches to resolve her dilemma. One Merrill Lynch analyst began to question the numbers and profits that were being produced by Enron and eventually he was fired. Let Professionals Help You, Leave your email and we will send you an example after 24 hours 23:59:59, Let us edit for you at only $13.9/page to make it 100% original. No matter what your politics, "Enron: The Smartest Guys in the Room" will make you mad. That’s in human nature. 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. Practices such as mark-to-market accounting, complicated financial statements and special purpose… (producer). He was also highly philanthropic in the Houston community as well as within his company. Directed by Alex Gibney, the film looks into the collapse of Enron Corporation that … 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 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. ENRON ACCOUNTING FAILURE AND ETHICAL ISSUES (2005). 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. Enron is also one of the most celebrated business ethics cases in the century. Our customer support team is available Monday-Friday 9am-5pm EST. Everyday, there are political and business fraud happening, and most of it goes unnoticed. Once priced at $90 per shares the price was dropped to less than $1 by November 2001. One of the most striking scenes in Bethany McLean and Peter Elkind’s Enron expose The Smartest Guys in the Room details the courtroom testimony of Kenneth Lay and Jeff Skilling during their criminal trial. Topic: Ethical Issues In Enron The Smartest Guys In The Room, By clicking "Send Message", you agree to our, Ethical And Legal Issues In Business Communication, What Did Arthur Andersen Contribute To The Enron Disaster, Assignment 1Naimat Ali Taimoor FA17BBA010 Section DEthical issues, https://paperap.com/paper-on-enron-the-smartest-guys-in-the-room/, terms Corporate Leaders from major companies such as Enron were caught up in scandal’s ranging from fraud, conspiracy, grand larceny to obstruction of justice” (Cross, 2011, p. 76). Enron is also one of the most celebrated business ethics cases in the century. the film Enron: The Smartest Guys in the Room was not used. Want to get a price estimate for your Essay? Enron executives really believed in a winner-take-all society, as a result, they pushed their employees very hard to create productivity, with little or no concern about ethical issues. It’s hard to score those executives on Locus of Control. Companies try their best to keep many of the accounting scandals quiet. Ans: There was a vast number of ethical issues raised in the movie Enron-the Smartest Guys in the Room but the three I am going to focus on are listed be view the full answer view the full answer Unfortunately, he chose to set bad examples. There are so many things that went wrong within the organization, from all personal (prescriptive and psychological approaches), managerial (group norms, reward system, etc. 301 certified writers online Pushpak Mundhada 30 th March, 2020 Enron: The Smartest Guys in the Room Enron, once ranked as the 7 th largest company on the fortune 500 and ranked as the 6 th largest energy company in the world, on December 2 nd, 2001, filed for bankruptcy in the United States. While employees want secure jobs with high earnings; ustomers want quality products with cheap prices, which may eventually result in the company and employees’ low income. They always strived for the best. Enron Corporation was an energy company running out of Texas that was started when two companies, Houston Natural Gas and InterNorth, merged together in 1985. Want to add some juice to your work? 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. When one of the interview subjects states early in the documentary, "this is a human story," I quickly prepared myself for a stream of sob stories. The thing I liked most about this documentary was the fact that it focused on the guys at the top, the self-proclaimed "smartest men in the room", the so-called geniuses who knew the energy business so much better than the rest of the industry. Moral muteness refers to the failure to forthright one’s moral concerns regarding issues about which one possesses moral convictions. Prepared by: SAMIRA ALVANDI SHAHRZAD KARIMI HAMED KHAZAEI Gibney, A. Don't use plagiarized sources. 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