Enron And The Enron Scandal

1387 Words Mar 17th, 2016 6 Pages
Enron, The Shadiest Guys In the Room When you ask young people about the Enron scandal today, most of them have not even heard of it. The fact of the matter is, it is very relevant to young professionals today. Enron is the most recent story of classic Wall Street greed and fraud. However it is still argued today by different stakeholders who are is responsible. This essay will take the viewpoint from multiple stakeholders to use the Enron Scandal as an example to further explain American corporate corruption. To analyze this scandal, we first need to know what happened. Enron opened as a natural gas company in Houston, Texas in 1985, founded by Ken Lay. It then formed into energy, commodities, and service company. Lay then hired Jeff …show more content…
They constantly denied interviews and reports with people asking how they were managing to pull this off. . They were making more money than they knew what to do with, whether it was legal or not. And to the outside world it was. According to CNN Money, “The most innovative company in corporate America. That 's what FORTUNE called Enron for six years running.””. These guys really thought they were the smartest in the room. Now we look at the lower level employees, the day-to-day workers. When Enron was reporting these huge profits and a sky-high stock price, they all started dumping money into their 401K accounts. They were fooled under a guise of a strong company. However they were also fooled by the visage of infallible leadership. The film “Enron, the smartest guys in the room” referenced an old psychology experiment where if a person in authority told someone else to do something, and the person in authority accepted all responsibility, the person being instructed would do almost anything. This was true of the Enron traders. They knew what they were doing was heinously illegal, however, the executives told them it was ok, so they went right on and kept doing did it. The traders became indulged in this “the end justifies the means” mentality. Amanda Brock, an Enron executive during the film told Skilling “the

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