Posted: February 1st, 2023

Social psychology, sociology, and organizational behavior theory

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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