The Pressures Of Running A Successful Business

1177 WordsOct 3, 20165 Pages
The pressures of running a successful business may present ethical dilemmas at one point or another in the life of a business leader. Consider the many leaders and entrepreneurs who face challenging situations. One such leader is Arthur Andersen who became bankrupt and was forced to shut down his prestigious ninety-year-old auditing company, finding himself in the middle of several scandals, but one in particular befell him for good. From a man of integrity, for over ninety long years, to his infamous conduct which resulted in him being brought to court and indicted by the Securities and Exchange Commissions (SEC) before a grand jury for making bad leadership decisions. In October, 2001, Arthur Andersen, the supervisor of the Enron account, found himself in deep hot water with the Enron Oil Company in Texas, as the SEC announced that an investigation into the accounting of Enron was pending (Ferrell, Fraedrich, Ferrell, 2011). On November 8, 2001, Enron was forced to present its financial statements of five years to which Andersen was the auditor (Ferrell, 2011). About five hundred and eighty-six million dollars in losses were ascertained and therefore, Enron, was forced into bankruptcy one month afterwards (Ferrell, 2011). By December 2001 Enron filed bankruptcy (Ferrell, 2011). This event triggered a domino effect and as Enron’s accountant, Andersen was charged for obstruction of justice. Accountants measure and disclose financial information, with assurance of accuracy to
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