Ethical Incidents in Organizations: Arthur Andersen

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Ethical Incidents in Organizations: Arthur Andersen While the majority of people in the US are aware of the problems that were faced by Enron, most do not realize the impact the company had on other organizations which were also involved in the scandal. One such company was the accounting firm Arthur Andersen. While the firm is still technically in business, it is nothing like it was in the days before its ethical dilemma and scandal. The mission and core values that were touted by Arthur Andersen were violated by the problems in which the company involved itself. Public embarrassment was definitely caused by that, but there was much more than embarrassment at stake for the firm. Before the problems Arthur Andersen had 28,000 employees in the US and 85,000 worldwide (Moore & Crampton, 2000). As of 2011, the company had only 200 employees, and most of them were based in and around the Chicago area. These employees are working on the dissolution of the company and the handling of more than 100 civil lawsuits which are still pending against the company from its part in the debacle that took down Enron. Because Arthur Andersen was trusted and widely lauded as a great accounting firm, it had many clients and a significant profit margin. When it was discovered that the firm had "adjusted" documents for Enron, Arthur Andersen was forced to surrender its CPA licensing (Sachdev, 2003). It was heavily fined, but the damage to its reputation was the worst issue it faced. Once a
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