Enron - the Smartest Guys in the Room

"Enron: The Smartest Guys in the Room"

"Enron: The Smartest Guys in the Room" is a 2005 documentary showcasing one of the largest business scandals in American history. The film examines the 2001 collapse of the Enron Corporation, an energy giant, by illustrating how the motives and actions of its top executives led to its eventual demise and bankruptcy.

The Enron case is a classic example of exploiting the delicate fabric of business ethics. Enron's executive motives and financial goals were fueled by questionable accounting practices and business decisions. Their actions which centered on falsely depicting high company revenues and assets coupled with the cloaking of apparent debt signified total disregard for all of their stakeholders. Stabilizing a high share price was necessary at all costs and lured investors into thinking the company was actually well off financially. Current employees were consistently brainwashed into thinking Enron was such a successful and financially stable company and felt very safe in terms of buying company stock and acquiring future guaranteed pension plans. The same can be said for the major banks who poured millions into Enron in the form of business loans.

Enron's falsified profitability created a façade of stability and resulted in stakeholder security. However, once Enron fell billions of dollars were owed to shareholders, employees, and bankers, money which the company could not pay. Its top executives so misguided by their thirst for greed and company fortune left the people they exploited buried under the ground. Enron's horrifying manipulation of the California energy crisis also depicts this sentiment. Disregarding the human need for electricity, an important resource of modern life, Enron traders feasted on the millions of money to be had through this careful exploiting. It did not matter who Enron was stomping over and kicking aside, up until its demise, its main goal was to achieve wealth at all costs. There was no balance of financial motives and social responsibilities. Enron was fixated on utilizing accounting and legal loopholes for the benefit of its executives and complete disregard of everyone else who was in the way.

As mentioned earlier there are several reasons for the collapse of the Enron giant. One certain individual who played a somewhat enlightening role in this matter was former Vice President Sherron Watkins. Watkins was responsible for sending out an anonymous memo to Enron Chairman Kenneth Lay raising "suspicions of accounting improprieties." Watkins knew of Enron's questionable accounting practices and wasn't sure if Mr. Lay was aware of the situation at hand. She voiced her concerns that these types of practices would result in company implosion.

Watkins is often depicted as a financial "whistleblower." However, considering she never actually