Custom «The Significance of Bethany McLean’s Article» Essay Paper Sample
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In a world when several journalists will want to make money out of selling out false information, Bethany McLean sets out to bring out what can be termed the story of the decade. The senior writer illustrates the amazing rise and scandalous fall of Enron. For instance, she becomes the first journalist in national publication to use courage in questioning how the company operates and in its daily dealings. Indeed, not many stories get public limelight in the wake up to a story as was the case with Bethany McLean article (McLean, 2001). It is a story of courage, and a route that few women could dare take in the community.
Importance of the article to Enron
Bethany McLean shades some light on Enron and how its dealings could have affected its overall performance. In order for the energy company to rise up from its perceived difficulties, it was important that some critical factors with regard to operations be brought out. Many would argue that the writer interfered with the operations of an organization that was in great favour with the Bush administration, but which was slowly rotting as a result of mismanagement (McLean, 2011). Stakeholders at the energy company were hence made aware of what brought great effects to the operations of the company.
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Several people at Enron did not know that there were elements on non-transparency in terms of the financial statements that were being directed to shareholders as well as analysts. Furthermore, the complex business model that was present in the company required a more advanced way of dealing with the management issues. It is worth noting that there was no effective accounting system at the company that could properly produce the balance sheet needed for investment (Kjar & Slaata, 2007). It never came to the realization of the management that accumulation of negative habits as well as action over the years could have impacted negatively on the organization.
A company cannot measure its success by aiming at keeping its reported income and cash flow up as was the case with Enron. These activities only blinded the administration that they were performing well while in the real sense, they were not. For instance, Enron realized that keeping reported income and cash flow up, as well as having assets that were inflated and liabilities off the books can easily lead to bankruptcy. Furthermore, the actions taken by the executives at the company are what affected its operations (Associated Press, 2011). Most of the tenders that were being directed by the leadership of the company were never scrutinized. One perfect example was the actions of Skilling and Fastow which were given approval by the board and which turned out to have played a hand in most of the illegal dealings that remain questionable.
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On the other hand, it is surprising to learn how founders of a company can conspire so as to commit a crime. The case was true when Kenneth Lay and former Jeffrey Skilling conspired to commit securities and wire fraud. This could not have been brought out to the knowledge of the stakeholders had the article by Bethany McLean remained below. The company came to the realization that its own directors and founders were involved in dealings that were going to be costly to its operations (McLean, 2001). The article therefore serves to bring to an evil end the various limitations that hindered the company from progressing and the secrets that were being kept from the public for quite a long time.
Journalists have a role to play in ensuring that the profession remains of honour and integrity. The story of Enron has indeed become an iconic story in the field of journalism. In writing the article, the writer presented means through which company use so as to remain relevant in the Wall Street and be able to meet their expectations (Associated Press, 2011). The financial expectation of the energy company was not reading as was expected for there were elements of illusion as well as reality. In order for real success to occur within the industry, companies should ensure the presence of effective dealings and which can be termed as real and not mere illusions.
On the other hand, Bethany McLean demonstrates the fact that she has an understanding on the business and economic principles. Further, the concepts of business journalism that entails new financial understandings can be seen in the article (McLean, 2001). It is a major step for journalist to perceive the story as a way of eliminating some unethical practices within the society and saving companies in becoming better organizations and institutions. The writer has documented the corporate scandal that serves as an example to other companies. Through this revelation, business journalism has played its part in revealing the most fascinating aspects of media in recent years. In conclusion, the writer has uplifted the public perception on the role of journalism within the community and the important role that it has to play in ensuring that the society remains a better place to live in.