Analysis Of Bigger Than Enron

“Fraud is the daughter of greed” said British novelist, Jonathan Gash. In the documentary, "Bigger Than Enron," Hedrick Smith discusses how regulatory agencies such as accountants, banks, lawyers, auditors and politicians didn’t try to save such a huge and high-powered corporation as Enron and other companies. Enron was one of America’s largest corporations which was producing electricity, national gas and employed 20,000 people who weren’t aware of what the executives and accountants were doing.

Enron’s collapse occurred due to the fault of its executives who used their power in a wrong direction. They used information for their own gain and deluded their employees. Employees were obliged to put all their retirement plans into the stocks of Enron and at the moment of falling down of stocks, workers weren’t able to sell them, but heads could sell them any time. Enron’s positive reports were hiding downsides of the company only to hold their stocks at the ceiling level for a reason to get more investors. Enron’s failure caused by the greediness of its executives and the fact that no one stopped them and even favored in such crime. For example, their

Not even one person with an ethical understanding of business was found from the accountants, lawyers or auditors to prevent such enormous fraud. They did a variety of immoral actions, which they thought would stay undercover, but led to the bankruptcy of Enron. The executives overindulged in stealing money from their shareholders. They couldn’t stop, and they gambled Enron for couple of years. Arthur Andersen, which was supposed to be one of the most prestigious and important independent auditor companies, checked the books which were obviously incorrect and hide that fact in hope to save their big