Essay about Fraud Is The Daughter Of Greed

Essay about Fraud Is The Daughter Of Greed

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“Fraud is the daughter of greed” said British novelist, Jonathan Gash. In the documentary, "Bigger Than Enron," Hedrick Smith discusses how regulatory agencies such as accountants, banks, lawyers, auditors and politicians didn’t try to save such a huge and high-powered corporation as Enron and other companies. Enron was one of America’s largest corporations which was producing electricity, national gas and employed 20,000 people who weren’t aware of what the executives and accountants were doing.
Enron’s collapse occurred due to the fault of its executives who used their power in a wrong direction. They used information for their own gain and deluded their employees. Employees were obliged to put all their retirement plans into the stocks of Enron and at the moment of falling down of stocks, workers weren’t able to sell them, but heads could sell them any time. Enron’s positive reports were hiding downsides of the company only to hold their stocks at the ceiling level for a reason to get more investors. Enron’s failure caused by the greediness of its executives and the fact that no one stopped them and even favored in such crime. For example, their auditor company, Arthur Andersen, was part of these unethical and illegal actions. Under the pressure of the executives of Enron, Sunbeam and Waste Management, Arthur Andersen didn’t want to lose important clients and just helped them to make a good picture of their accounting statements and hiding their depths. As a consequence of unethical actions by accountants and auditors, which left a lot of people unemployed, investors lost their money and most of all, people lost their trust in the economic system in general.
The movie “Bigger than Enron” is not just about accounting fraud an...

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...s. It means that businesses cannot produce harmful products for people and customers feel protected. Businesses don’t have that unethical opportunity to make any toxic product (businesses have their own reasons why they could produce such a bad product: cheaper, faster) since government’s laws makes sure that product don’t harm the community.
The story of Enron’s failure is an example of a proverb “what goes around comes around.” Self-regulated market gave too much freedom to executives and they used it thoroughly without a shame. They overstep not only their loyal employees and investors, but first of all, their humanness. Therefore, the government should regulate and check as many sides of the business as they can to prevent such greediness of people, to attain all money in the world. Business is a game. Every game has a rule. Who fails to follow the rules, dies.

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