Enron, the Smartest Guys in the Room Essay

Enron was involved in Americans largest corporate bankruptcy. It is a story about mess, and in reality it is a tragedy. Enron made their variant sky rocket through unethical means, and in reality this corporation kept losing money. The primary value operating among the traders was greed, money, and how to make realises to a lower place any circumstance. The traders thought that a good trader is a nonional trader and the creative trader can find any merc ease upise fortune. Arbitrage opportunity was defined for the trades as the opportunity to make abnormal profits.The traders rocked the prices of electricity over the roof on the consumers accounts. Traders discovered that they could create man-made shortages of electrical power so they could push the price of energy higher. With this outline the west coast traders were adapted to make almost 2 cardinal dollars for Enron. The traders neer tempoped back and asked themselves if what they were doing was ethical it is in t heir desire term quest does it help them if they totally defrauded California does it advanced their goal in nationwide deregulation?Instead, they get pulled from every loop they could feed to get the profit from Californias misery. It was released in the court that traders knew they are doing some(prenominal)thing wrong. The traders that were not flourishing with Enrons style had only two options. They could have nourished themselves from the hunting lodge by leaving the company or stay in the game, and blindly follow the orders from the authorities. Those traders would not ask any questions because they were afraid that they would only assure what they suspected would be true. in that respectfore, they tried to protect themselves from remorse.We need to ask what the motivation of traders to behave this way was. It was the view of fat bonuses and Enrons ability to make for the darker side of the traders. The traders lost their sense of object lessonity. Once the trad ers accepted the idea of barbarousness it was accept suitable for them to continue with their unethical behavior. The deterrent cause compass is our natural tone that makes people know what is right and wrong and how they should behave. If the working(a) environment does not have moral standards and the individual is not strong enough to step aside, he/she will be drag down and lose their moral compasses.Some people lose their moral compasses and might not savor any responsibility for their actions, because a higher authority approved their action. The traders matte up no responsibility on their accounts and accepted their unethical behavior because they had an compliment from their CEO Jeffrey Skilling. When I used to work for the banking industry I had an opportunity to see how people can change. The bonus and profit involvement was not at all similar to the ones of the traders from Enron, but the principle was same.Once in that location was involvement of power from hi gh take management, threat, or reward, people were able to change drastically their behavior. They did not care about clients money, property, and well-being because they were peril of losing their job or blind by the bonuses and career scramth visions. I was always curious if they would do the same thing to their family members. How would they behave if at that place was no client sitting in front of them but their ma or dad? Would they still try to convince them to close some dirty deals by using those lying phrases that they were taught by their supervisors?I could have never understood how it is possible that some people are able to change their face so rapidly without any shame or guilt. I think everybody should treat people the same way how they command to be treaded. I did not care about the pay deoxidize I had to take in my new job as long as I did not need to be involved in such unethical working environment like banking industry. It was my worst working experience e ver and in the future I will do everything that I can to avoid working for an industry without moral standards.There is only one circumstance that might cause me to lose my moral compass, and that would be only if somebody would hurt a loved one. caper Locke based his theory on moral rights. The people are salvage and equal and everybody owns their body and labor. The people own anything that was labored by them. However, people agree to form the government to protect their rights, liberty and property that would be otherwise be insecure and unsafe. In Lockes theory Enron should have not been allowed to be involved in deregulation, because government should be there to protect peoples property and rights.If the government stayed involved in electricity power regulation in California, Enron would not have so easily ripped California of $30 billion dollars. The government should also protect people that invested in Enron, especially employees 401k plans. Lockes natural rights are p roscribe right and for Locke the negative rights do not conflict with positive rights. Those rights suggest that the marketplace should be free, which can cause inequality between people. For example large groups of society will stay poor compared to other groups that would grow even richer.Adam smiths view of free market derives from utilitarian agreement. The greatest benefits would be produced by free market and unavowed property. The buyers will look for lowest price possible and producers will cover to the buyers anything they want to for the lowest possible price. The market competition would drive the self-interested individuals which would execute society. Enron created fake shortages of the electrical power and since there was not too umpteen suppliers to create market competition that allowed Enron to boost the price of their stock and counterfeit the stock market.The criticism of Smiths argument is the fact that his vision is not accounting for the monopoly compan ies. Economist Keynes argued Smiths invisible hand theory. He claimed that without government involvement the demand might not be high enough to absorb the supply. This approach would avoid unemployment and depression. We should not block that government spending might not cure high unemployment but create inflation. Marx argued that capitalism is concentrating industrial power to the few individuals who organize workers for bundle production.This can cause production surplus and economic depression, and replacement of workers by machines can create unemployment. The property should have served for the needs of all society. The cordial classes were determined by the way how society organized their workers. Enron would never be able to operate under capitalism. The company would be owned by the government and if there would be any discrepancy done it would never come up to the public. State should create mixed economy that would defend private property and market system. The gove rnment policies should remedy any deficiencies.The gifted property system should tend towards Lockes utilitarian system than Marxs socialist system. There should be a healthy mix of Lockes, Marxs, Smiths, and Keynes philosophy and political views. We should follow Smith and Locke in their low level of government interaction, which would keep strong competition between businesses and benefits for society. Keynes idea would counterbalance the supply-demand equilibrium, unemployment and inflation. And Marx vision would equalize and decrease the gap between social classes and depart support for retirees and disabled society.