But as "Enron: The Smartest Guys in the Room" shows, it shouldn't have been. When Enron filed for bankruptcy at the end of 2001, it was a shock to most Americans. Well worth a look and yet another good documentary making it into cinemas. A cautionary tale that I doubt that those that needed to learn from have learnt from. However it is well structured and easy to follow, stripping away the feared complexity of the tale and telling it in a fascinating and engaging way. Overall this is not a perfect documentary because it is a bit biased and based on commentary from subjects all on one side of the fence. The film also stretches to bring in Bush and his cronies as if they were also to blame it doesn't labour this point but what little it does is stretched again it could have done less and allowed the audience to draw its own conclusions. Sadly it does use this not to the point of distraction but just to the point where I wondered if the makers didn't think that the facts would be strong enough to make the audience get the point without the extra bit of hammering. Although they lay things out well, the film doesn't manage to avoid nailing its colours to the mast which is a shame because the story is compelling enough and damning enough to work without resorting to cheap digs, funny footage and so on. In fact I did wonder how much this film cost to make because the vast majority of it is stock footage and a handful of interviews. Lesser hands could have fudged the telling but the team here structure it well and use footage from Enron and C-Span to really good effect. With the Enron film it is all the more interesting because it is a prime example of how it all fell down and how easy it is to con the market which, regardless of the legality of the accounting method used, is basically what they did! The film tells the story well and it is a tale that never struggles to fascinate. So I have watched films like this and like The Corporation with interest and appreciate the way that they sell a complex issue in easy to understand ways. Working for an American multinational myself I am always interested and critical of the business model of making more and more money and keeping the stock increasing in value being the only way to survive. However things would eventually catch up with the company and a few years ago the company collapsed in bankruptcy before the arrests began. And it did so, to the point where it was widely praised within the business community and by stockholders. However this could not go on forever and the company was under pressure to continually come up with new ideas to keep the deals and money flowing. With this in place Enron was able to earn money without actually earning money. The method allows a company to claim projected earnings from projects once the deal is signed. Lessons that the collapse taught other corporations.When Enron was granted permission to use mark-to-market accounting it saw the start of the dramatic increase in its profits and its share price.Lesson that were taught to the policy makers and the investing public from the collapse.How over speculation can lead to huge loses.Ĥ.How the investors were blinded by quick gains preventing them being cautious when investing.How loopholes in financial laws can be exploited.Did the relevant act negligently abetting in the corporate collapse.How collapse of Enron could have been prevented. How greedy auditors colluded to misrepresent financial statements.ģ.How bonuses to the executives lead to their financial misreporting.The corporate culture of the collapsed corporation.How the corporate was founded and its growth.Historical background of the collapsed Enron corporation The paper will address the lessons that are depicted in the documentary by evaluating:ġ. The paper is intended to take a critical look at the documentary film "Enron: The Smartest Guy's in the Room" and the underlying lessons to the investing public as well as to the policy makers. While the investors lost billions of dollars by investing in the company's stocks. Thousand of the Enron's employees lost their saving and jobs as a result of the collapse of the corporation. Their repercussions to the society include loss of savings and investments and collapse of corporate institutions. In the corporate culture where executives are rewarded huge bonuses on declaring huge profits leads to corporate excesses such as greed and financial misreporting in corporate the corporate world.
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