Social psychology, sociology, and organizational behavior theory
Details:
Give examples from the film, Enron – The Smartest Guys in the Room, of the
variables and concepts that we have been discussing under the categories of social
psychology, sociology, and organizational behavior theory. Note the characteristics
of the organizational environments, the social-psychological elements, and the
social structural forces that are depicted in these films and relate these
characteristics as being supportive or deterring of illegal behaviors.
Social psychology, sociology, and organizational behavior theory
Organizations work in different environments and experience different situations as
they render their services. This paper discusses various concepts and variables
relating to social psychology, sociology and organizational behavior theories as
depicted in the film-‘Enron-The Smartest Guys in the Room’.
The film exposes the scandals perpetrated in Enron. This was one of the successful
companies that was ranked for 6 years running in the fortune magazine as the most
admired. The company management falsified the book of accounts and recorded in the
books of their accounts as profits deals that were not yet over. This therefore,
made the company to appear profitable on the outwards but internally it was
wanting.
The way an individual has socialized determines their behaviors. In the film for
example, the founder of Enron Kenneth Lay engage in corruption after he receives
two traders that bet on the oil markets. He is more concerned about profits and
does not adhere to ethics when doing business. His selfish interest drives him to
plan schemes and even compels his CEO, Skilling to utilize mark-to-market
accounting to record profits on projects after contracts as signed. Therefore as
the founder of the company, he as well serves as an agent of socialization by
influencing those that work under him to act the way he wants (Gibney, 2005).
Therefore, the bonding in this movie between the founder and the CEO is aimed at
perpetrating white collar crimes for the companies benefits. The movie as well
manifests concepts relating to materialism, economic self-interest and competitive
individualism. The founder of Enron is concerned with materialism and economic
self-interest. The founder of Enron does all sorts of corruption to ensure that
the company remains profitable. He is not concerned about the plight of the
investors but rather interested in his gains.
Sociological theories on the other hand look into issues on broader perspectives.
An organization is expected to have structural dimensions such as sculpture and
formal legal systems that help them carry on with their operations (LeClair, 2015).
The culture of an organization is usually the behaviours that the organization
holds and which is passed.
Companies are obliged to meet certain thresholds. They are required to adhere to
certain laws when caring out their functions. Violation of these laws leads to
ramifications. In the case of Enron, it is evident that the company failed to
abide by the laws. Law enforcement practices are a variable that helps the
investors and stakeholders to unravel the genesis of the crimes committed in the
company. The company accounts are audited after McLean a reporter of Fortune
questions irregularities about the company financial statement and stock value.
This report leads to the conviction of the company managers for violating the laws
that made them to engage in ethical business practices (Gibney, 2005).
Organization theories as well help to understand the way crimes are committed in
an organization. Most of the times, the crimes are done by individuals or groups
of individuals. The motivation of engaging in these criminals is contributed by the
beliefs and the socialization of an individuals and the hope of self-interest
(Ebert, 2005). In this case, the founder of Enron conspires with various managers
to falsify books of accounts to achieve his interests.
In conclusion, Enron film provides a good basis of understanding the application
of sociological theories and organizational theories. A number of variables and
concepts manifest in the film that indicates how the white-collar crimes were
committed in the company. There is lack of ethics in the way the organization is
managed and this leads to its downfall.
References
Ebert, R (2005). Enron: The Smartest Guys in the Room; Chicago Sun-Times; 28 April
2005
Gibney, A. (director). (2005). Enron: The Smartest Guys in the Room (Film).
LeClair, D. (2015). Boston University. Week Two Lectures Notes: Theories of White
Collar Crime Causation-Part 1. Retrieved from Boston University.
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