The corporate culture of Enron was not exemplary. As well, the scandal was echoed in the media, and the extensive media coverage reports, the story was filmed in a documentary titled Enron: The Smartest Guys in the Room (2005) directed by Alex Gibney and based on the eponymous best-seller of the chroniclers of Fortune Bethany McLean and Peter Elkind. Also in March 2002, the popular Playboy magazine caused a stir by inviting executives of the company to be photographed naked for your pages in a session by veteran photographer Gen Nishino, publishing, published in July of that year, was a bestseller and represented a fleeting moment of fame for female Shari Daugherty, Lawrence Carey, Vanessa Schulte, Taria Reed, Janine Howard, Courtnie Parker, Christine Nielsen, Maya Arthur, Lori Hodges and Cynthia Coghlan, selected from over 300 applicants and also participated in the realization of a DVD entitled Women of Enron in which recounted the experience of posing for the famous publication and documenting the process behind the scenes. In the year (2005), the film The Crooked E: The Unshredded Truth About Enron was directed by Penelope Spheeris. Also, the remake of the movie Fun with Dick and Jane, starring Jim Carrey and Téa Leoni, was made as a parody after learning of the bankruptcy of Enron (joke that appears in the final scene of the film, when a former colleague of Dick Harper, Jim Carrey’s character tells him he has started working on a new venture multinational called “Enron”).
Enron Corporation was an American energy company, located in Houston, Texas. Enron employed around 21,000 people and was one of the leading companies in the world distribution of energy (electricity, natural gas) and communications. Its turnover reached $ 101 billion in 2000, just before the financial scandal that caused its bankruptcy.
Target of several accusations of fraud and tax accounting and a debt of $ 13 billion, the group filed for bankruptcy in December 2001 and took with Arthur Andersen, which served its audit. At the time, investigations revealed that Enron had manipulated its financial statements, with the help of companies and banks, and hid debts of $ 25 billion for two consecutive years, having artificially inflated its profits, according to The Fall of Enron (2010).
4. Discuss two alleged irregularities in the actions between sellers of securities and Enron.
In 2001, Enron suddenly failed. The incident came totally unexpected since the company officially in the last 10 years had a very rapid growth, increasing tenfold its value, reaching the rank 7 in the ranking of major U.S. corporations. However, within a very short time, Enron shares, all considered rock-solid, they lost all their value, through the listing of $ 86 to 26 cents, burning about 60 billion dollars in three months. This led many employees to serious difficulties, since a proposal was made that allowed them to purchase shares of the company and could not do anything to protect themselves from disaster. The top executives of the company but did not suffer any loss because they had sold their shares before the crash, thus realizing huge profits, for they in fact did not include any clause that would prevent them to get rid of their shares. Public opinion demands explanation, as it seemed inexplicable that a corporation that had revenues of approximately $ 130 billion a year collapsed so quickly with little warning.