Enron Scandal

There are various things that I learned about Enron and its collapse after viewing this film that I did not know prior to watching it. One of the things that I learned is how Lou Pai who was the CEO of Enron Energy Services had left the company with $250,000,000 after selling his share of stock and at the point Enron was still $1 Billion in debt. I also learned that he would use money from shareholders to visit strip clubs and became the second largest landowner in the state of Colorado after he left the company. In addition, I learned that in the 1990s as long as the company met their projections the stock share kept going higher which lead to the process of “Pump and Dump.” This was when executives would push the stock price up and then cash in their multimillion dollar transactions. Furthermore, I also learned that Enron constructed a power plant known as the Dabhol Power Plant in Maharashtra, India which was one of its biggest failures. The company had lost $1 Billion due to this development because India could not afford the power that it was producing.

I feel that Jeff Skilling is the most responsible for the demise of this company for various reasons. For example, he had one condition to be met before he joined Enron and this was the use of a certain type of accounting process known as mark-to-market. This allowed the company to record potential profits even if those projects did not turn out to be successful and allowed Enron to appear as being profitable when those profits were really in fact non-existent. I also feel that Jeff Skilling had a poor attitude towards money and how he felt that it’s the only thing that motivates people which I believe further convinced him to carry out this fraud. Also, I believe that his establishment of the Peer Review Committee (PRC) which graded employees on their performance was unethical because they should not be getting fired from the company that easily. In my opinion, Jeff Skilling was a risk taker as he stated in...