We can custom-write anything as well! Read Good Case Studies On Enron: The Smartest Guys In The Room and other exceptional papers on every subject and topic college can throw at you. 15 May. ... Enron: The Smartest Guys in the Room, Director/Producer Alex Gibney, Magnolia Pictures, Documentary, (2005). Chicago / Turabian - Humanities Citation (style guide) "Smartest Guys in the Room." Get step-by-step explanations, verified by experts. The film was based on the 2003 award-winning book, The Smartest Guys in the Room by Fortune reporters, Bethany McLean and Peter Elkind. This case study on Smartest Guys in the Room was written and submitted by your fellow student. Enron’s power business worldwide created a global reputation for Enron. Enron: The Smartest Guys in the Room was a documentary film showing the real story of the largest business scandal in the U.S. where top executive officers in Enron Corporation squandered over one billion American dollars while the Corporation investors and employees lost everything. It observes that standards of right and wrong may change with time and cultures. In this case, egoism defines what is correct and what is wrong with respect to oneself. applying models used in the financial services industry to the deregulated gas industry. It also featured insider accounts and fire-raising corporate videotapes audios, interviews with former Enron executives and employees, reporters, former Governor of California and stock analysts. In this paper, it analyzes the, reason for this event in detail including the management, conflict of interest and accounting, fraud. 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. Utilitarianism theory, on the other hand, puts more emphasis on the overall amount of good that might be produced by an action or a decision. IvyPanda, 15 May 2020, ivypanda.com/essays/smartest-guys-in-the-room/. TimeLine Theatre – Enron Study Guide 4 “The powerful lesson from Enron for me is the power of self delusion and how people rationalize and deceive themselves.” —Bethany McLean, Fortune Magazine reporter and author of The Smartest Guys in the Room, quoted in the documentary film The Smartest Guys in the Room As a result, many California citizens experienced blackouts, and unfortunately, two people lost their lives while Enron’s West Coast desk pocketed huge profits. Mismanagement affects the employees, investors and the management itself. Cunningham, Gary and Harris Jean. This act was well rewarded since Enron stocks skyrocketed to generate high revenues in a short period of time. Every corporate organization operates under its own set of code of ethics. A Justice-based theory of ethics is concerned with the perception of fairness of actions. Ultimately, the company was shut down and the principals were prosecuted. The executive officers included Ken Lay, the CEO, Chief Operating Officer, Jeffrey Skilling, Chief Financial Officer, Andy Fastow and the Accounting Firm, Arthur Andersen. Enron, the Houston-based energy trading company committed systematic fraud over the course of several years before finally being subject to investigation. One of the largest ethical and legal business cases in a very long time has involved Enron. The Smartest Guys in the Room: The Amazing Rise and Scandalous Fall of Enron. However, no such training was offered or sought in Enron, and thus it can be said that employees did not understand the newly introduced trading activities in the organization. Ethics, Reference for business, Encyclopedia of business. By doing this, it treated everybody accordingly. Essentially Enron faked its bookkeeping to report profits that never existed. Enron: The Smartest Guys in the Room: Study Guide This has been the greatest, the smartest, the destructive, and the complex scandal of any corporation that ever existed in America. Enron, the Smartest Guys in the Room is a 2005 feature film suitable for senior secondary and tertiary students about how core values of groups can be eroded in business. It was the seventh largest companies at the time. May 15, 2020. https://ivypanda.com/essays/smartest-guys-in-the-room/. Though Enron was applauded for being innovative, it had various organizational problems. "Smartest Guys in the Room." This resulted to skyrocketing of the company’s stocks and Jeff Skilling was considerably named CEO of the company. First of all, there's Kenneth ‘Ken’ Lay , son of a Baptist preacher, who tries to leave his poor childhood behind and has the ambition to make huge wealth for himself. Introduction The book The Smartest Guys in the Room describes the Enron fraud case. Gibney, Alex. Countless books and articles were written about it, but only The Smartest Guys in the Room holds up a decade later as the definitive narrative. Retrieved from https://ivypanda.com/essays/smartest-guys-in-the-room/. Copyright © 2020 - IvyPanda is a trading name of Edustream Technologies LLC, a company registered in Wyoming, USA. The executive officers in Enron ignored the code of ethics and conspired, mismanaged and engaged in corrupt activities that crushed the company. IvyPanda. Once this code of ethics is followed, smooth running of a company is guaranteed. Enron The Smartest Guys In The Room 2 Harvard Case Study Solution and Analysis of Harvard Business Case Studies Solutions – Assignment HelpIn most courses studied at Harvard Business schools, students are provided with a case study. T. R. Enron Corporation was a leading commodity, and Service Company established in Houston, Texas. CASE REVIEW “ENRON: The Smartest Guys in the Room” Posted on August 12, 2013 by S Standard INTRODUCTION and BRIEF HISTORY This study guide presents the case of Enron Corporation, a major American energy trading company that went bankrupt in December 2, 2001 owing to the breaking out of its huge financial and accounting fraud scandal. Senior management should at all times demonstrate good governance in a company where the interest of the company should come before personal interests. IvyPanda. 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. Your privacy is extremely important to us. Course Hero is not sponsored or endorsed by any college or university. Enron was one of the biggest scandal of all time in the stock market. However, the executive officers of Enron chose not to follow this code of ethics. You are free to use it for research and reference purposes in order to write your own paper; however, you must. In a situation where personal gains prevail, the shareholders and employees feel the wrath as in the case of Enron. Answer to 1-4 Short Paper: Enron Case Study Watch Enron: The Smartest Guys in the Room. “Enron and Arthur Andersen: The Case of the Crooked E and the Fallen A.” Global Perspectives on Accounting Education 3.1 (2006): 27-48. "Smartest Guys in the Room." GUIDESTAR, 2011. Enron: The Smartest Guys In The Room. In this case, a company might decide to expand its business physically or across the borders. The idea of Enron dealing with all types of businesses both simple and complex made it impossible for employees to have the required expertise hence resulting to organizational problems. HDNET FILMS, 2005. In such a case, when required to give any business decision, an egoist will put self-interest first. Conflict of interest destroys all company plans. Web. At over $60 billion being scammed away from the public, they were the biggest fraud in history. It cannot harm some to benefit others but treats all equally. (2020) 'Smartest Guys in the Room'. Enron did not have a mission or a strategic plan, and that can be viewed as an organization lapse. This was followed by the death of Ken Lay the CEO, two months later. Web. Barnett, Tim. The company was not making profit so they decided to do “future value accounting”. In the case of Enron Corporation event, the court delivered justice on the criminal proceedings against the corrupt management officials and the accounting firm. But since some of these problems are due to ignorance, lack of personal will to do right, bending the law, and selfish interests, personal conscience and good governance are required to protect the interests of all in a company. Corporate governance and leadership solely relied on the state of mind, will power and personal relationships of management. Reference for Business, 2011. Many companies like Enron have voluntary codes of ethics that prohibit executives from being involved in other business entities that do business with the company they are working for. Web. Film. This was shown to shareholders so they can spend money and invest in Enron. Budgetary controls became complex, and Service company established in Houston, Texas if you are the problems come... 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