- ENRON THE SMARTEST GUYS IN THE ROOM TRIAL FOR PILLAGING
- ENRON THE SMARTEST GUYS IN THE ROOM MOVIE IS AN
Enron The Smartest Guys In The Room Trial For Pillaging
You do not need to use formal academic citation, but may use informal citation within your post.At this writing in early 2006, the principal players in the sordid drama of Enron — believed by some accusers to be the most egregious corporate malefactors in American history — are about to go on trial for pillaging their company and devaluing its stock, leaving thousands of employees and investors holding the bag while they absconded with millions.The documentary is based on the novel, The Smartest Guys in the Room: the Amazing Rise and Scandalous Fall of Enron written by Peter Elkind and Bethany McLean (Gibney, 2005).
Arrogance, pride, power, the abuse of power – they’re all here. Louis Borget, Andrew Fastow, and Jeffery Skilling were the top management executives from 1985 until 2001.Alex Gibney’s documentary examines the meteoric rise and spectacular fall of this Houston, Texas-based firm, which for a time made its top officers wealthy beyond their wildest dreams, and all by engaging in business practices alleged to have been little more than a complex shell game.If you like Enron: The Smartest Guys In The Room 2005 Movie. Enron: The Smartest Guys In The Room. 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.I believe Ken Lay and Jeff Skilling were the smartest guys in the room. The idea of inflating the price of stock and manipulating their income by using potential profits, shutting down power plants and next generation ideas (on- demand with blockbuster) was smart. In this assignment, you will watch Enron: The Smartest Guys in the Room and then use your readings to answer the questions below.
Enron created brutal workplace environment and forced all executives and other staff to adopt unethical practices in order to make profit. Mark-to-market accounting allowed Enron to look profitable even in the time when company was making losses (Gibney).Enron under the guidance of Lay, Skilling and Author Anderson (accounting firm) committed various crimes such as manipulation of financial facts and documents, hiding actual profit and revenue of the company from stakeholders, manipulation in stock trading, and creation of limited partnership or special purpose companies just to manage fund & risk. Skilling promoted mark-to-market accounting practice under which company can record profit that will be generated from the project right after execution of contract.
Enron succeeded in fooling so many people for such a long time because company was involved in creative trading. After debacle of Enron and long years of court proceedings, Enron’s shareholders received $7.2 billion. The Sarbanes-Oxley Act makes provisions for companies to adopt strict accounting practices such as indent audit, strong internal financial controls, and open financial reporting. Corrupt accounting practices, misleading investors and other practices performed by Lay and Skilling resulted in debacle of the company.Enron scandal resulted in modification in mark-to-market accounting method and creation of Sarbanes-Oxley Act. The company was in all manners hiding their losses and transferring it to other subsidiary companies created by the Enron. Enron looted retirement fund of its employees.
Enron The Smartest Guys In The Room Movie Is An
This movie is an eye opener and suggests that nobody should believe in any company without going into each and every detail. These companies have nothing to do with welfare of the people or the society but they only care about their benefits without going into ethical or unethical aspect of the same. I think all big companies do some manipulations in order to fool people, authorities and investors.
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