Enron: The Smartest Guys In The Room [Motion picture]. (2005).
This film nicely wrapped up what was a very complicated story. As the scandal took place, uncovering the important pieces of the narrative was difficult because they were competing with everything else in the daily news information deluge. Letting a few years pass and waiting for the dust to settle makes stepping back and taking the 10,000 foot view easier.
When Enron was originally in the news I didn’t have any sense of the great impact that company shareholders suffered, and I didn’t understand what a celebrated and ‘accomplished’ company it had been shortly before the scandal broke out. Being a high school student in 2001, I wasn’t as tuned in as I would be if something like this happened now, so I appreciate the deep-dive explanation of what really happened.
I am proud that investigative reporting was one of the catalysts for uncovering the story. At a time when many people think the media is suffering, news is biased, and technology has rendered newspapers and magazines obsolete – this scandal was ultimately uncovered because a lone reporter asked a few tough questions. A lone female reporter at that, who not was not only dealing with a very ‘macho’ culture at Enron, but also didn’t have very much career experience before breaking the story.
Energy is a form of technology, and that’s what Enron sold – but this didn’t feel like a story about technology. The company’s trouble mostly came from accounting practices, limiting the supply of their product and creating false demand to raise prices. This could happen with any industry that serves a basic need to the population – auto makers, communication services, airline industries, etc.
It raises the question (although it was seemingly answered for energy long ago) at what point does a technology, or a technology market, become regulable? There are probably actual definitions of this, but I’ve never thought about it before. Energy became regulable a long time ago, and now the internet is approaching that same threshold – but does it meet the same criteria?
How would this story be different if Enron were a broadband provider? I don’t know if they would have been held to the same ethical standards, since unlike energy, broadband hasn’t yet been defined as critical to the functioning of everyday life in American society.
The film presents the notion that Enron only attempted these unethical actions because they believed they were ‘smarter’ than the regulators, and that being smarter gave them permission to break the rules. Is this any different from the idea that ‘code is law,’ and whatever code someone is smart enough to come up with gives the coder permission to circumvent legality?