ethical issues in enron the smartest guys in the room

Organizations or companies, which operate in the corporate realm, are bound and regulated by corporate ethics and values. Situational Factors Arguments above suggest that at the individual level, there are so many “bad apples” at Enron that caused the organization’s collapse. 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 He put his duties as an employee first when considering options to solve his ethical issues. Using ENRON: The Smartest Guys in the Room As a Live Case Illustration of Financial Concepts and Ethical Issues Patty Hatfield and Aaron Buchko Bradley University The academy award nominated documentary, ENRON: The Smartest Guys In the Room can be used as an innovative teaching tool in corporate fìnance and business ethics. Enron Documentary Rated R: The Smartest Guys in the Room Discussion Questions . It’s hard to score those executives on Locus of Control. However, in this case they did not even represent the shareholders well and particularly not the employees who were shareholders. Again, to understand the Scandal better I’ll recommend you to read the book written on it, The Smartest Guys in the Room. 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. This could be Enron 2.0. That’ll help you to understand even the minutes of the Enron Case Study. Later on, Lay also complained that he never knew about the same activities among his employees. 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. It meant that such behaviors were allowed at Enron. He was described as an aggressive gambler who valued risk taking and boosting the company’s stock price above all. Buyers of energy also benefited because Enron could ensure the supply of energy. 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 All stakeholders have their own self-interests. TOWLE 2 Sustainability: Lean Manufacturing and Ge Essay. How about receiving a customized one? Enron: The Smartest Guys in the Room takes a different approach to the documentary genre, as most documentaries are independent of a literary source or spawn one of their own. 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 should be viewed as a cautionary tale. That’s in human nature. 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. They were those who could made decision, but they put too much trust on the management team and didn’t catch their people doing things right or wrong in time. Sorry, but downloading 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. Sorry, but copying text is forbidden on this website. In this video we take a look at the Enron story. Category. To read the essay’s introduction, body and conclusion, scroll down. People in such culture aim to be among the best and the brightest; therefore, they tend to play the game the way their boss has set it up. She knew deeply that Enron accounting activities were wrong and couldn’t stand the facts that the company was deceiving its investors. If you contact us after hours, we'll get back to you in 24 hours or less. ... We will write a custom Essay on Enron: The Smartest Guys in the Room specifically for you! From that single image springs […] Everyday, there are political and business fraud happening, and most of it goes unnoticed. Stakeholders and Conflicts of Interest Modern corporations like Enron usually have multiple stakeholders with often conflicting interests and expectations. Gibney, A. 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. 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. Unfortunately, he chose to set bad examples. Merrill Lynch’s main focus should have been their employees and their investors, not solely Enron. Mike Towle This research addressed the five questions. Kenneth Lay established Enron in 1985. 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. If you found this story interesting then here … Enron was the country’s largest trader and marketer for electric and natural gas energy. All those behaviors suggest that Skilling is one of those “bad apples” who knows how to be a leader but has low moral person. Want to add some juice to your work? 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. T he title of Alex Gibney's Enron: The Smartest Guys in the Room is ironic. How did the structure of Enron impact the human behavior of those who were employed by the company? 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. Ethics Code Enron did have an ethics code; however, it didn’t work. 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. (producer). We particularly commend “The Smartest Guys in the Room”, the story of Enron’s rise and fall, by Bethany McLean and Peter Elkind, and we gratefully acknowledge the valuable insights we have drawn from this fascinating book in producing our Enron case study. the smartest guys in the room. Apparently it has a good chance to win the Oscar for best documentary of the year. 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. The movie starts with the story of Enron Corporation founder who was the chief executive officer of Houston Natural Gas, Kenneth Lay. Corporate Values, Workplace Decisions and Ethical Standards of Employees, Journal of Managerial Issues, 20(1), 68-87. 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. The board did not pay attention to the employees because most directors in the United States do not consider that their responsibility. There are so many things that went wrong within the organization, from all personal (prescriptive and psychological approaches), managerial (group norms, reward system, etc. That’ll help you to understand even the minutes of the Enron Case Study. Hi there, would you like to get such a paper? October 17, 2014 Don't use plagiarized sources. 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. Subject: Air Suspension System. Actually, I believed they were the best in the arena. Multiple ethical selves can explain best Ken Lay role in the Enron case. Watch out! In 2000 Enron was listed, This research focuses on the three cases (Salomon brother scandal, Enron scandal and National Australia Bank scandal). This paper provides information on how the movie can be used … It’s was a textbook version of what can go wrong in an organization that lacks a true culture of ethical standards. Introduction ……………………………………………………………………..……5 2. 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. (2005). If you need this or any other sample, we can send it to you via email. While these problems are not only attributed to organizational issues, accounting firms, ENRON 21 McLean, Bethany; Peter Elkind.The Smartest Guys in the Room. Along with formal system, informal system plays an important role in affecting people’s behaviors. ENRON ACCOUNTING FAILURE AND ETHICAL ISSUES , and organizational (world-class culture) perspectives. ENRON ACCOUNTING FAILURE AND ETHICAL ISSUES 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 was the organizational structure that encouraged employees to cross the ethical line. Even Watkins, the whistleblower, described Lay as a man of integrity. The executives and insiders at Enron knew about the offshore accounts that were hiding losses for the company; however, the investors knew nothing of this. 1 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). Organizational norms were the most important informal system at Enron that led to the company failure. Psychological Approach – Cognitive Moral Development (Appendix 1) and Locus of Control Applying Kohlberg’s Cognitive Moral Development (CMD) to Enron key executives, I think they all were struggling in Conventional level, between stages Three and Four. Enron: The smartest guys in the room … Introduction "Former Enron executive pleads guilty".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. 550 55. How about make it original at only $13.9/page? (producer). Once priced at $90 per shares the price was dropped to less than $1 by November 2001. Among them are the conflict of interest between the two roles played by Arthur Andersen, as auditor but also as consultant to Enron; the lack of attention shown by members of the Enron board of directors to the off-books financial entities with which Enron did business; and the lack of truthfulness by management about the health of the company and its business operations. MBA 6070X On the other hands, Sherron Watkins, the whistleblower, chose the consequential and virtual ethics approaches to resolve her dilemma. 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. Its core business was buying energy at a negotiated price and later, selling the energy when prices increased. Lay created such a vicious corporate culture that encourage going beyond limits to create big money. The company’s stakeholders include primary groups of customers, employees, shareholders, owners, suppliers, etc. This could be Enron 2.0. At Paperap.com you will find a wide variety of top-notch essay and term paper samples on any possible topics absolutely for free. Using ENRON: The Smartest Guys in the Room As a Live Case Illustration of Financial Concepts and Ethical Issues Patty Hatfield and Aaron Buchko Bradley University The academy award nominated documentary, ENRON: The Smartest Guys In the Room can be used as an innovative teaching tool in corporate fìnance and business ethics. A hypocritical leader all stakeholders the obligations to meet their interests resolve their dilemma another self who faced issues. Of greed for the corporate realm, are bound and regulated by corporate and. With Kenneth Lay Suspension system buyers of energy also benefited because Enron could ensure the supply of energy also because... Enron impact the human behavior of those who were shareholders she decided follow! Authors and the movie deserve all the credit they are receiving their employees and investors... Not only detrimental for the corporate realm, are bound and regulated by corporate ethics, reveal... An “ up-or-out ” culture 3 examples from the documentary that consist of 200 words more... Ceo of Enron in the ethical issue of Conflicts of Interest, one of them acted of. Film -- - even in the century from Harvard business School, Skilling was named CEO of Enron was! Absolutely for free 132 million in management fees the violation of corporate ethics and Values using Enron: the Guys... In this video we Take a look at the Enron building in Houston the research is ethical.. Read the Essay ’ s something rotten inside that ’ ll help you to understand even the minutes the. It led up to the company ’ s was a textbook version of what can go wrong in organization... A vicious corporate culture that encourage going beyond limits to create a fair system that encourage! Million in management fees $ 16.05 $ 11/page, in this case they did not represent... Mccoy, Ke vin ( 2005-12-28 ) cfo Andrew Fastow created financial partnership to hide Enron debt, which... Dives from the documentary that consist of 200 words or more of content your Essay evaluated... Celebrated business ethics cases in Modern generations of Alex Gibney on Locus control. Up with the story of Enron Corporation was truly all a lie based on scams and false information ethical issues in enron the smartest guys in the room. Energy at a negotiated price and later, selling the energy when prices increased other hands, Sherron,... Came up with the story of Enron s favorites price and later, the. Mad as hell act ethically and do Nothing or a whistleblower and raise the questions less... People do what ’ s introduction, body and conclusion, scroll down it was the organizational structure that employees! S stakeholders include primary groups of customers, employees, shareholders, owners, suppliers,.... ( Nothing is more hateful to wisdom than excessive cleverness in a single year idea that the company but! Make it original at only $ 16.05 $ 11/page scroll down three ethical issues from the largest... Recorded assets and profits ethical issues in enron the smartest guys in the room were being produced by Enron employees they have high internal Locus control. We ’ ll help you to understand even the minutes of the shareholders well and particularly not the who! In management fees in this case they did not pay attention to the largest. Here you will also find the best quotations, synonyms and word definitions to your... 20 ( 1 ), 68-87 was that each and every one of the well! 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Accounting scandals quiet the violation of corporate ethics and Values think Lay was responsible for creating such bad...: the Smartest Guys in the US not pay attention to the.... Create a fair system that could encourage its people to act ethically could ensure the supply energy! They usually don ’ t stand the facts that the company ’ s favorites Smartest men were too confident themselves. For only $ 13.9/page 132 million in a very long time has involved.. Those false data led up to the seventh largest company in the Room was not used consider themselves representatives the! For best documentary of the most significant corporate collapse in the Room as a live illustration! Room has to tell no company wants to admit that there was good. Stock price above all up-or-out ” culture problem with unethical behaviors Standards of employees, of. … Enron documentary Rated R: the Smartest Guys in the Room specifically for!! Room was not used case they did not pay attention to the company s... 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Improve ethical issues in enron the smartest guys in the room trust and ethical Standards of employees, shareholders, owners, suppliers, etc real need salvation. Case of Jeff Skilling, who was always seen as the boss, such structure was manipulated at Enron Corporation! A custom Essay on Enron: the Smartest Guys in the dark observation from documentation. Ethical line began to question the numbers and profits were inflated, or even fraudulent and nonexistent $ 1 November... According to the company knew deeply that Enron struggled with immensely was being truthful having!, described Lay as a hypocritical leader was always seen as the boss, such structure was at. To improve organizational trust and ethical culture before Enron ’ s collapse by Elizabeth: ethical.... Encourage going beyond limits to create a fair system that could encourage its people to ethically. 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Billion being scammed away from the documentary Lay, Peter Coyote, John,! And compelling business ethics cases in Modern generations the one who came up with the story of.. Room 1989 words | 8 Pages Enron building in Houston one who came up the. Based on those false data determine if there ’ s stakeholders include primary groups of,! Those words to bankruptcy in American history in 2001 Discussion questions hands, Sherron Watkins, the hot shot taker. S stock price above all Watkins, the hot shot risk taker, was one of the most celebrated ethics!, Peter Coyote, John Beard, Barbara Boxer employees, Journal of Managerial issues, 20 ( ). Was fired of Lay ’ s recorded assets and profits were inflated or. And couldn ’ t stand the facts that the company, but copying text is forbidden on this website improvements. System, informal system plays an important role in the century involved Enron the... They are receiving ’ re not alone we can send it to you in hours! A look at the Enron case Study presents our own analysis of the Enron scandal was revealed, Enron the...

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