Enron the Smartest Guys in the Room - 1989 Words

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. As a matter of fact, it took Enron 16 years to go from about $10 billion of assets to $65 billion of assets, and 24 days to go bankruptcy. Enron is also one of the most celebrated business ethics cases in the century. There are so many things that went wrong within the organization, from all personal (prescriptive and psychological approaches), managerial (group norms, reward system, etc.), and organizational (world-class culture) perspectives. 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 fact that those ken lay, Jeff Skilling, Andrew Fastow, and other leaders decided to cross the legal line to cover up the company failures and to deceive investors lowered their stand in CMD even though they were actually considered extremely smart and successful businessmen. I personally think going against the laws is unacceptable in any circumstances, especially with those figurehead executives because they were the ones who set up such a bad culture for their organization. It’s hard to score those executives on Locus of Control. From my observation from the documentation, these smartest men were too confident about themselves. They always strived for the best. Actually, I believed they were the best in the arena. It suggested that they have high internal locus of control, which meant they absolutely have the ability to control their own life. However, at the same time, decision to go against the laws meant those leaders were gambling with their business, which is a high external locus of control behavior. Also, while internal locus of control people are more likely to take consequential approach in their prescriptive decision making process to reach the best solution for all parties, Enron executives chose to benefit themselves first off. Situational Factors Arguments above suggest that at the individual level, there are so many â€Å"bad apples† at EnronShow MoreRelatedEnron, the Smartest Guys in the Room.1229 Words   |  5 PagesEnron, the Smartest Guys in the Room. Enron was involved in American’s largest corporate bankruptcy. It is a story about people, and in reality it is a tragedy. Enron made their stock sky rocket through unethical means, and in reality this company kept losing money. The primary value operating among the traders was greed, money, and how to make profits under any circumstance. The traders thought that a good trader is a creative trader and the creative trader can find any arbitrage opportunityRead MoreEnron Smartest Guys On The Room1573 Words   |  7 PagesThe movie ENRON smartest guys in the room is about one of the biggest corporation corruptions in the United States. In 1985, ENRON Corporation, was a company that delivers pipeline for natural gas and electricity, while mergering with Houston Natural Gas and Internorth. ENRON quickly grew into a reputable company that generated enormous profits. In a short period of time ENRON was considered one of the top global trading company for natural gas, commodities, and electricity. According to the statistic;Read MoreEnron : The Smartest Guys Of The Room Essay1549 Words   |  7 PagesIntroduction Enron was a Houston based energy, commodities and services company. 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Enron: The Smartest Guys in the Room shows us how basic human nature does not change, whether its in the easy fall into killing as a means to resolve disputes, or in the incessant human obsession to acquire forRead MoreEnron Case : The Smartest Guys Of The Room1149 Words   |  5 Pages In review of the Enron case, executives higher up exploited their privileges and power, participated in unreliable treatment of external and internal communities. These executives placed their own agendas over the employees and public, and neglected to accept responsibility for ethical downfalls or use appropriate management. As a result, employees followed their unethical behavior (Johnson, 2015). Leaders have great influence in an organization, but policies will not be effectiveRead MoreEnron: the Smartest Guys in the Room Essay1834 Words   |  8 Pagesthis paper is consider three possible rationales for why Enron collapsed—that key individuals were flawed, that the organi zation was flawed, and that some factors larger than the organization (e.g., a trend toward deregulation) led to Enron’s collapse. In viewing â€Å"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. As in any organizationRead MoreEssay on Enron: the Smartest Guys in the Room5209 Words   |  21 Pagesï » ¿Enron: The Smartest Guys in the Room 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. In addition to being the largest bankruptcy reorganization in American history at that time, Enron was attributed as the biggest audit failure. Enron was formed in 1985 by  KennethRead MoreA Film Review of Enron: The Smartest Guys in the Room666 Words   |  3 PagesAbstract This is a review of the movie, Enron: The Smart Guys in the Room. The paper analyses the themes that contributed to the downfall of Enron. 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. Factor That Led To Enrons Downfall According to the documentary Enron: The Smartest Guys in the Room, it seems that one major reasons that led to Enrons down fall was; unethical corporate behaviorRead MoreEssay about Enron: The Smartest Guys In The Room1948 Words   |  8 Pages it took Enron 16 years to go from about $10 billion of assets to $65 billion of assets, and 24 days to go bankruptcy. Enron is also one of the most celebrated business ethics cases in the century. There are so many things that went wrong within the organization, from all personal (prescriptive and psychological approaches), managerial (group norms, reward system, etc.), and organizational (world-class culture) perspectives. This paper will focus on the business ethics issues at Enron that wereRead MoreThe Smartest Guys At The Room : The Amazing Rise And Scandalous Fall Of Enron1654 Words   |  7 Pagesâ€Å"The Smartest Guys In the Room† the amazing rise and scandalous fall of Enron goes into great detail of what happens when a com pany has no ethics. It could be said that ethics was the last thing on the minds of the executives that worked at Enron. People employed at Enron cared about two things the stock price of the company, and the money they could put in their own pockets. This was what caused the fall of one of the biggest energy companies in the U.S†¦ Enron failing did not happen overnight it