Unfortunately, in recent times, we have seen a number of examples of unethical b
ID: 2697079 • Letter: U
Question
Unfortunately, in recent times, we have seen a number of examples of unethical behavior in organizations, often tied to the organization's handling of finances. Discuss ethical issues facing the top leadership or financial managers in today's corporate environment regarding their approach to the financial matters of the firm.
What pressures exist that might encourage unethical behavior, particularly as it pertains to the firm's financial reporting or situation?
How might these be mitigated?
(You might want to conduct a search to identify examples or to examine actions suggested or taken to help mitigate these instances.)
Explanation / Answer
The recent re-examination of ethics in financial management can likely be traced to the 2001 Enron scandal. Few in academia would argue the significance of the scandal in regards to ethics and financial management. Prior to 2001, Arthur Andersen was considered one of the Big Five accounting firms in the United States. A 2002 Bloomberg Businessweek special report details the role of Arthur Andersen in the scandal and the pitfalls of allowing financial auditors to work in partnership with the corporations which it is paid to audit. Because of the grossly unethical actions of these and other organizations of the time.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.