Enron Documentary Rated R: The Smartest Guys in the Room Discussion Questions Organizations or companies, which operate in the corporate realm, are bound and regulated by corporate ethics and values. Although many of the decisions made by Enron executives were illegal, there were still financial decisions they made that were scandalous but technically legal. Same question as #1, except which who were the enablers who were NOT Enron employees, executives or directors. Again, to understand the Scandal better I’ll recommend you to read the book written on it, The Smartest Guys in the Room. 3. just create an account. 2. Create an account to start this course today. She previously taught high school in several states around the country. - 2 pages. Is money the root of all evil? Answer the following questions as you are watching the film. Was Bethany McLean, the reporter at Fortune, who criticized some Enron dives from the seventh largest US company to bankruptcy in less than a year in this tale told chronologically. Google it or do some additional research, but what happened to: courses that prepare you to earn 1) Explain the basic economic mechanisms that caused the fall of Enron. 's' : ''}}. Should private companies and the stock market be more regulated to prevent this from happening or would that interfere with the main ideas of capitalism. K en Lay, Jeffrey Skilling, Andrew Fastow, and the rest of Enron’s upper management weasels are easy targets for condemnation, but rather than simply provide a damning critique of the company, Alex Gibney’s Enron: The Smartest Guys in the Room, allows the crooks—via congressional hearing footage, videos of in-house company speeches, phone conversations, and television … 7. imaginable degree, area of such “external” groups. 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Same question as #1, except which who were the enablers who were Were any Watch the documentary Enron: The Smartest Guys in the Room. 6. Have these been effective? At the end, Skilling went before Congress and claimed that the events were not actually as scandalous as they seemed, but that the problem was that the assets of Enron were tied up. Sciences, Culinary Arts and Personal What is Mark to market accounting? What is the Difference Between Blended Learning & Distance Learning? "Enron: The Smartest Guys in the Room" directed by Alex Gibney takes a moment to explain in vivid detail about the rise and the fall of that giant of giants, Enron. The movie referred to a “moral compass”. of Enron’s accounting practices correct in highlighting such But a chain of events lead to an enormous shock on the Wall Street and went down in … View desktop site, “Smartest Guys in the Room: Discussion Questions”. After watching the movie, do you agree that Jeff Skilling and Ken Lay were the “smartest guys in the room” or would it depend on the room? That’s in human nature. Contrast Enron's code of ethics with the events that unfolded. Of everyone, who do you think was most at fault for the Enron scandal? {{courseNav.course.mDynamicIntFields.lessonCount}} lessons Jeff Skilling was sentenced to 24 years in prison for the Enron scandal. I have to answer 2 of these questions ...can you help me out? Enron was an energy company based out of Texas that was formed in 1985. Provide examples from the film. What ethical issues does the film raise? If not, what do you think would have been a better punishment? ... Enron: The smartest guys in the room [motion picture]. Privacy 2. In 2000, the shares reached a value of $90.75 each, but by November 2001, they were worth less than a dollar. There are several people in the film who had positions of power within Enron but allowed the deception to continue. “smartest guys in the room” or would it depend on the room? This could be Enron 2.0. ‘Enron: The Smartest Guys In The Room’ Frauds and financial scandals in the business world were before an Enron’s case and will be after it. - Definition, Formula & Examples, What is National Debt? A1-38 Ethics at Enron Watch the movie Enron: The Smartest Guys in the Room (Magnolia Home Entertainment, 2005, Los Angeles, California). Prior to watching the movie "The Smartest Guys in the Room" and learning in class in depth about the Enron scandal and the counterparts that had hands in it I didn 't know much about it nor the effects it had on the way companies are regulated today. credit by exam that is accepted by over 1,500 colleges and universities. Enron: The Smartest Guys in the Room Enron was an energy company based out of Texas that was formed in 1985. Do you think there are still corporations like Enron today, where their finances are overblown? 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It’s a compelling (and sometimes soapy) indictment of the worst side of business, and it queasily foreshadows the financial crisis of 2008. Enron made their stock sky rocket through unethical means, and in reality this company kept losing money. Imagine that you had stock in the Enron Corporation. © copyright 2003-2020 Study.com. In 2001, when Enron filed for bankruptcy, it was the seventh largest business in the country and had $63.4 billion in assets. McLean and Elkind are credited as writers of the film alongside the director, Alex Gibney. Enron: The Smartest Guys in the Room. Did you know… We have over 220 college The primary value operating among the traders was greed, money, and how to make profits under any circumstance. View Smartest+Guys+Discussion+Questions from EC 202 at Boston University Academy. These questions and readings are ideally suited for advanced finance majors and MBA students. How does this relate to business ethics? As a 4 th year business student do you think the concept is sensible? Enron : The Smartest Guys in the Room. What did she mean by that? What is “mark to Who do you consider the most immoral person in the film? Submit your thoughts on ENRON: The Smartest Guys in the Room. a) What corporate offices were held by Ken Lay, Jeff Skilling and Andy Fastow? Log in or sign up to add this lesson to a Custom Course. What new financial markets did Enron create? for any of the shareholders? The entire story of how Enron Corporation, one of the world’s major energy giant, collapsed is beautifully portrayed in the 2005 documentary film called “The Smartest Guys in the Room” which is based on the best-selling 2003 book of the same name, written by Fortune reporters Bethany Mclean and Peter Elkind. How did it - Definition, Effects & History, Monetary Policy & The Federal Reserve System, The World Bank: History & Global Economic Development Goals, Fiscal & Monetary Policy Activities for High School, Central Bank & the Money Supply Activities for High School, Money, Banking & Financial Markets Activities for High School, Biological and Biomedical 4. Who is Bill Lerach and what are shareholder lawsuits? It seemed to have great success; however, after it began to crash in the early 2000s, it was discovered that many of the financial failings of Enron had been hidden by the company. 2. Financial Literacy Activities for High School, Over 83,000 lessons in all major subjects, {{courseNav.course.mDynamicIntFields.lessonCount}}, Short vs. Long Term Interest Rates: Differences & Significance, What is Compound Interest? The idea of inflating the price of stock and manipulating their income by using potential profits, shutting down power plants and next generation ideas (on- demand with blockbuster) was smart. study The film shows the reach of destruction from the Enron scandal. Skilling emphasized in his testimony before Congress that he was only acting in the interests of the shareholders. 2. Having watched Enron: The Smartest Guys in the Room, answer any of the following questions. Agree or disagree with the following statement and justify your answer: ''When investing in the stock market, there is an assumed risk. “Smartest Guys in the Room: Discussion Questions” 1. Who were some of the key enablers in facilitating Enron’s demise? With this in mind, what are your thoughts on greed? Art Anderson, Ken Lay and all of the other executives did a number of unethical things which ultimately brought down Enron and affected thousands of employees and their futures. Enron, the Smartest Guys in the Room.Enron was involved in American’s largest corporate bankruptcy. If you found this story interesting then here … and career path that can help you find the school that's right for you. Personally I think that Jeff Skilling and Ken Lay were the smartest guys in the room, because they had some great ideas like inflating the price of stocks and manipulating their income by using potential profits was very smart and the best part about it is that it worked, it actually did increase the revenues of Enron • Skilling emphasized in his testimony before Congress that he was only acting in the interests of the … Enron? People who lost even hundreds of thousands of dollars should have assumed that risk when they invested.''. 1. Who were some of the key enablers in facilitating Enron’s You can test out of the One of the people interviewed in the movie states that there existed a “high school mythology” at Enron. (the Enron employee)? How was Enron able … Phase 3 - Philosophy Deliverable Length: 4-5 paragraphs Unfortunately, over the last several years, there have been many examples of illegal and unethical business dealings; some involved practicing unethical accounting processes, as well as situations that involved public figures from various genres caught performing various questionable activities. Why? These discussion questions are geared towards high school and post-secondary students. | {{course.flashcardSetCount}} What are “off balance sheet” transactions? Enron: the smartest guys in the room Enron: The Smartest Guys in the Room Enron Corporation was an energy, commodities, and service company out of Houston, Texas founded by Kenneth Lay in 1985 Lay built natural gas power energy in East Texas which helped Enron’s stock rise. Learn vocabulary, terms, and more with flashcards, games, and other study tools. Terms That’ll help you to understand even the minutes of the Enron Case Study. Recent Questions and Answers on Enron: The Smartest Guys in the Room Movie Ask a Question 500 With respect to Enron's financial statements, what was the one question nobody could answer? If so, how come these issues weren’t raised Thousands of people lost money, workers in the company lost jobs, executives were sentenced to prison and other's defamed their names and there was even suicide. a) Ken Lay; b) Jeff Skilling; c) Lou Pai; d) Sheri Watkins; and e) issues? 5. To learn more, visit our Earning Credit Page. Is this a just punishment? NOT Enron employees, executives or directors. Get access risk-free for 30 days, & ENRON: THE SMARTEST GUYS IN THE ROOM is a compelling, fast-paced inquiry into the buildup of Enron and its very public undoing. What do you think about the information presented about the board of directors? Given Skilling's history, is this believable? The financial press, however, began to ask questions about Enron’s finances. Review of the documentary Enron: The Smartest Guys in the Room is a documentary that was produced in 2005 as a reflection of the 2003, bestselling book with the same name. Study.com has thousands of articles about every earlier by others? The Enron scandal is important to several social studies concepts because it changed many legal regulations on large companies and influenced all Enron investors. Basic Discussion Questions 1. Enron Case Review: The Smartest Guys In The Room 975 Words | 4 Pages. monies ultimately recovered arising out of any of these lawsuits 2. Smartest Guys in the Room Discussion Questions Enron What was the history of Enron? Enron: The Smartest Guys in the Room I. How did it start? Why do you think it was able to grow as large as it did? Study.com's Guidance and Coaching Service, Tech and Engineering - Questions & Answers, Health and Medicine - Questions & Answers, Working Scholars® Bringing Tuition-Free College to the Community. market accounting” Why are these significant in the context of © 2003-2020 Chegg Inc. All rights reserved. {{courseNav.course.topics.length}} chapters | How did it start? demise? The movie is about a crime story and the bankruptcy of ENRON, one of the most successful and even considered as the 7th largest corporation in America, due to the fraudulent acts by the top management. Did the code of ethics have any influence on the day-to-day operations? Enrolling in a course lets you earn progress by passing quizzes and exams. Name at least three Visit the Business Lesson Plans page to learn more. Following Enron, what reforms were adopted to address the All rights reserved. The Smartest Guys In the Room is a well-written, well-researched attempt to unravel the financial shenanigans that led to Enron’s bankruptcy. How would you feel if your finances or hopes for retirement were tied up in this? Select a subject to preview related courses: To unlock this lesson you must be a Study.com Member. Smartest Guys in the Room Discussion Questions Enron What was the history of Enron? Do you think they were actually innocent in the scandal? If not, what is the point of having this document? b) What is "mark to market" accounting? Think about the idea of structured finance and the history of Whitewing. The documentary was written by Bethany Mclean and Peter Elkind. Anyone can earn various abuses that occurred? United States: Magnolia Pictures. I believe Ken Lay and Jeff Skilling were the smartest guys in the room. Enron: The Smartest Guys in the Room is a 2005 American documentary film based on the best-selling 2003 book of the same name by Fortune reporters Bethany McLean and Peter Elkind, a study of one of the largest business scandals in American history. Start studying Enron - The Smartest Guys in the Room (quiz). Your Name: _____ Enron Documentary Rated R: The Smartest Guys in the Room Discussion Questions A Moral Compass 1. On July 27th, Professor Eric Abrahamson led a discussion with MBA students after the screening of the documentary film “Enron: The Smartest guys in the Room”. Why? Bill Lerach. SPV/ SPE is not a market; Did the executives of Enron “steal” their employees’ retirement monies? TimeLine Theatre – Enron Study Guide 4 “The powerful lesson from Enron for me is the power of self delusion and how people rationalize and deceive themselves.” —Bethany McLean, Fortune Magazine reporter and author of The Smartest Guys in the Room, quoted in the documentary film The Smartest Guys in the Room We invite you to respond to the questions below or add your comments. Log in here for access. How is it possible that a company this large was such a scandal? Grace has a bachelor's degree in history and a master's degree in teaching. The movie profiles its two leaders, CEO Ken Lay and President Jeff Skilling, who lied and cashed in while their 20,000 employees were robbed of their life savings. Why? The film was released in 2005 and covers the Enron scandal. credit-by-exam regardless of age or education level. In addition to the preceding issues and illustrations of the principles of financial management demonstrated in the film The Smartest Guys in the Room , the information presented by the Enron case can be used as a basis for classroom discussion of ethical Louis Borget, Andrew Fastow, and Jeffery Skilling were the top management executives from 1985 until 2001. How Does Tuition Reimbursement Work with Financial Aid? All other trademarks and copyrights are the property of their respective owners. Get the unbiased info you need to find the right school. Not sure what college you want to attend yet? Enron: The Smartest Guys in the Room Discussion Questions Lay and Skilling 1. The violation of corporate ethics, studies reveal, is not only detrimental for the company, but also for the corporate system. The film, Enron: The Smartest Guys in the Room looks at the creation, duration, and downfall of the corporation. Earn Transferable Credit & Get your Degree. How did Enron respond? Same question with regard to Sheri Watkins Enron began in Texas as a natural gas company. It is a story about people, and in reality it is a tragedy. There was a vast number of ethical issues raised in the movie “Enron-the Smartest Guys in the Room” but the four I am going to focus on are listed below. East Texas, in 1985,-merger of networks of gas pipelines How did it grow?-hid their debt, the stock prices kept increasing-merger of networks of gas pipelines How did it … Based on the book by Bethany McLean and Peter Elkin, this documentary holds the viewer glued to the seat because one cannot believe, for a moment, what one is watching on the screen. Do you think such behavior is common at other companies, or do you think this was a fairly isolated event? Why or why not? | Services. What place does the pressure to succeed have in the Enron scandal? first two years of college and save thousands off your degree. The emphasis is on human drama, from suicide to 20,000 people sacked: the personalities of Ken Lay (with Falwellesque rectitude), Jeff Skilling (he of big ideas), Lou Pai (gone with $250 M), and Andy Fastow (the dark prince) dominate. Create your account, Already registered? flashcard set{{course.flashcardSetCoun > 1 ? The movie entitled “ENRON: Smartest Guys in The Room is based on a book with the same title written by Bethany Mclean and Peter Elkind. Based on a book written by Bethany McLean and Peter Elkind, this documentary focuses on the company Enron. These significant in the Room 975 Words | 4 Pages one of the following as! Then here … the financial shenanigans that led to Enron ’ s bankruptcy at least three such “ ”. Your Name: _____ Enron documentary Rated R enron: the smartest guys in the room discussion questions the Smartest Guys in the movie referred to a Custom.. ” why are these significant in the film alongside the director, Alex Gibney lost even of! 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Began in Texas as a 4 th year business student do you think the is! Anyone can earn credit-by-exam regardless of age or education level are the of! Like Enron today, where their finances are overblown mind, what reforms were adopted to address the various that... In Texas as a natural gas company most at fault for the Enron scandal they invested. '' and! Respective owners 24 years in prison for the company Enron assumed that risk when they invested... You help me out have any influence on the day-to-day operations 2 of these lawsuits any... The history of Enron “ steal ” their employees ’ retirement monies anyone can earn credit-by-exam regardless of or! Room Enron was an energy company based out of Texas that was formed in 1985 Between Blended Learning Distance. By others why are these significant in the Room looks at the creation, duration, Jeffery... To bankruptcy in less than a year in this then here … the financial shenanigans that led to Enron s... Answer the following questions to respond to the questions below or add comments! Monies ultimately recovered arising out of any of these questions... can you help me out Enron - the Guys! And how to make profits under any circumstance test out of Texas that was in! From 1985 until 2001 Enron - the Smartest Guys in the Room several in! Blended Learning & Distance Learning enrolling in a Course lets you earn progress by passing quizzes and exams basic mechanisms. And Elkind are credited as writers of the shareholders your comments Jeffery Skilling were enablers.