The smartest guys in the room full documentary

#The smartest guys in the room full documentary movie

The greed and hubris exhibited by Enron execs is a sad reminder of mankindвЂ™s tendency toward selfishness and sinfulness.

#The smartest guys in the room full documentary movie

THE SMARTEST GUYS IN THE ROOM untangles the wide web in a way that is very easy to follow and almost exciting, though most audiences will find the movie sobering. As executives were fabricating the companyвЂ™s profits, they were cashing out their stock before the truth came out and the company collapsed. Sadly, high-level executives were using accounting practices that made it easy to deceive investors and continually raise the stock price. At this point, Enron began to grow by huge measures, and Fortune magazine named it вЂњAmericaвЂ™s Most Innovative Company.вЂќ Enron began in Texas as a natural gas company, but soon moved into trading, like a miniature version of Wall Street that brokered international energy commodities. The movie profiles CEO Ken Lay and President Jeff Skilling, who lied and cashed in while 20,000 employees were robbed of their life savings. Next, the dimension of predictably describes EnronвЂ™s use of the performance review committee.ENRON: THE SMARTEST GUYS IN THE ROOM is a compelling, fast-paced documentary about the buildup of Enron and its public undoing. Enron had to maintain control in order to succeed in the stock market. Equally important, The Enron Corporation appeared to be a financially sound company to outside world, but internally it had perfected a decentralized financial control structure, this made it difficult to get a good understanding of the companyвЂ™s daily activities and how it actually operated. Enron was actually controlling the cost of power by abusing California's deregulated market where they created false power surges to increase pricing of energy costs. For example, during the California wild fires executives were said to have chanted вЂњburn baby burnвЂќ while they were stealing money from the people who were paying unaffordable and high utility bills. Secondly, Enron proved time and time again that the executives were unethical, and were involved in unethical behavior. Skilling was controlling the employees and the traders. On the trading floor at Enron, employees would work twelve hour days and they often stepped on each other to get ahead and receive bonuses. The Enron Corporate retreats were often involved engaging in extreme sports and the tough guy persona was rewarded in the company. Ritzer (2004) stated that there was danger in progressive rationalization and it can become irrational when a company loses sight of their ultimate вЂ¦show more contentвЂ¦ Gibney (2007) stated that Skilling encouraged the aggressive culture and risk taking. Similarly, to maintain efficiency, the company took the rationality of the workplace and made it into irrationality by manipulating the stock market. They also used the future value of potential profits to drive profits up for the current day which should have been against the rules due to the ethical standards of business.

An additional example of efficiency by Enron was inflating the numbers which provided the desired efficiency and predictability that investors wanted. This type of work ethic coincides with efficiency our first dimension of McDonaldization. Lay had ambition and knew his life could be better, his ultimate goal was to become rich. Gibney, (2007) stated that Ken Lay grew up poor but he learned the value of hard work. In addition, ENRONвЂ™s use of efficiency, calculability, predictably and control, which are the four dimensions of McDonaldlization helped them succeed in the business world вЂ¦show more contentвЂ¦ Enron was an energy, stock exchange, and services company. ENRONвЂ™S aggressive culture and risk taking contributed to their collapse. However, its collapse affected thousands of employees and bankruptcy left investors with worthless stock. ENRON was superior at energy deregulation and became one of nation's ten largest companies. Progressive rationalization can actually result in some irrational consequences.

вЂњThe process of rationalization causes society to put a great deal of emphasis on efficiency, predictability, calculability and controlвЂќ. Show More ENRON: The Smartest Guys in the Room film reflection According to Ritzer, (2004).