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The Fall Of Enron Essay

1041 words - 5 pages

The film Enron: The Smartest Guys in the Room was a great film loaded with examples of unethical behavior with Enron being an unethical corporate culture. The film portrays the rise and fall of Enron, one of the most corrupted corporations this country has seen. Enron had started off as a promising energy company with a vision to do good which quickly turned sour when top executives torn the company down while stealing millions of dollars from people. A reason for the downfall of Enron was the deregulation of electrical power markets which fueled the greed of Enron’s officials. They were the ones that transformed Enron from a traditional energy company into an energy broker.
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With this scandal, Enron was able to have the appearance of a profitable company even though it was not. Skilling was also responsible for creating a highly unethical corporate culture at Enron. Every year, there would be a committee that would grade each employee and fire the bottom percent of Enron’s employees. This created a workplace that had very little room for error. Co-workers would willingly backstab each other if it meant they would keep their job and move up at Enron. Imagine working somewhere with that much pressure to perform. There were no surprises when the employees talked about being miserable there.
This film did a very good job at not just explaining what people like Skilling did wrong but showing it as well. It showed numerous clips of Skilling lying through his teeth about various things such as how the company was doing. It was a rare site to see an honest statement come from him or Lay. It was also Skilling that would transform Enron from an energy producer into an energy trader. Essentially Enron became the middleman for the sales of energy in the United States. They had created an exchange floor where energy could be bought and sold but using their own traders, they were able to out-speculate everyone else. Enron was using inside information to gain an upper edge.
Another example of unethical behavior I noticed was how easy Enron’s top executives would turn their backs on someone. Andrew Fastow was hired by Enron to make the company look profitable even though Enron was losing a ton of money. He was able to do this by driving up the stock of the company. Of course, this was much easier to do back then because the whole market was a speculative bubble. However, after the market crashed, Fastow found himself an easy scapegoat for the company. He became desperate and began using non-existent companies to try and cover up Enron’s losses. As Enron began to crumble from within, the California energy crisis...

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