Hey, guys! I just wanna share my impressions about one of the latest documentaries I have watched. Hopefully, this will inspire you to study business ethics deeper. Remember: it is hard to survive in modern highly competitive business environment without following certain “rules of the game”.
This documentary is focused on the business ethical issues of known company, Enron. It faced the first scandal in 1987. Two executives got into some market swindles by skimming cash into offshore accounts, running double books, and gambling with Enron's finances.
A visit to the Congressional lawsuit ended up with the minimal sentences for both. It’s just “the projection of the long-term income is overly optimistic and inflated” (Li, 2010). Later in the film, Enron turns from an energy producer into the trader. It becomes an exchange floor where people could buy and sell energy illegally. We observe corruption and truth-telling issues.
The firm was both a player and referee. It committed deregulation for the stock to go up. Managers reported a larger profit each quarter than the one before. I would define it as bluffing which led to the crash. Enron bosses tried to avoid social responsibility by pinning all blame on Fastow (unfair competition). According to the film, "the analysts weren't analyzing at all."
Enron was tricking own employees – and they blindly ate it. Basically, because of the company's dishonesty, the entire California got reamed out of billions because of an artificial electricity shortage. Enron's attempts to make money through the frauds in energy field had ruined its image. Even imposing price caps as the policy did not work. One attorney for the stockholders calls it a "synergistic corruption". The policy of enforcement took place: regulations to handle the case existed, but the government did nothing. Perhaps, bribery was also involved. There is no way to count the lies told by this energy company. The key to it all was the belief in deregulation.
Li, Y. (2010). The Case Analysis of the Scandal of Enron. International Journal of
Business and Management, Vol. 5, No. 10: 37-39.