A Film Review of 'Enron: The Smartest Guys in the Room'

666 Words3 Pages
Abstract 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 Enron's Downfall According to the documentary Enron: The Smartest Guys in the Room, it seems that one major reasons that led to Enron's down fall was; unethical corporate behavior. First, Kenneth Lay the founder of Enron got entangled in a financial scandal two years after establishing the company. After auditors reveal their wrong doings, he encouraged his employees to keep bringing in the millions; he later fired them after he discovered that they gambled away the company reserves. His Chief Executive Officer also engages in siphoning company funds to offshore accounts. Second, Lay hired Jeffrey Skilling as his new CEO on condition that he engaged in fair value accounting, a technique that he used in falsifying the company reputation and financial books by giving the impression that the company was making profits. Third, The Company sort to beguile analysts by meeting their projected target. In addition, the executives were involved in pumping up their stock value then cashing in millions of dollars. This brought down the company, even though they continually portrayed themselves as profitable. Forth, The Company engaged in many worldwide
Open Document