Enron and Arthur Andersen

Paper Summary:

This paper examines how the ethical difficulties involved in the case of Enron and Arthur Anderson, the accounting firm that had been responsible for auditing Enron accounts, are both numerous and overreaching. From the initial process of setting up the special purpose entities (SPEs), to the accounting bias fueled by large fees that Enron provided to Arthur Anderson, it looks at how the failure to testify truthfully about the Enron scandal in a court of law, showed a lack ethical decision making.

From the Paper:

"The ethical difficulties involved in the case of Enron and Arthur Anderson, the accounting firm that had been responsible for auditing Enron's accounts, are both numerous and overreaching. From the initial process of setting up the special purpose entities (SPEs) to the accounting bias fueled by large fees that Enron provided to Arthur Anderson, to the failure to testify truthfully about the Enron scandal in a court of law, participants showed a lack ethical decision-making. Freeman, in his stakeholder theory of business ethics, argues that businesses do bear social responsibilities for their actions. This paper will examine the actions of both companies against the strictures of the stakeholder model of ethics. "

More papers on Enron and Arthur Andersen:

• Term Paper # 124012 : "Arthur Andersen"
• Case Study # 113936 : "Ethics at Arthur Andersen"
• Essay # 46201 : "Arthur Andersen and the Enron Scandal"

APA Citation:

MLA Citation: