Business Ethics and Corporate Governance, Second Edition

CASE STUDY: THE RISE AND FALL OF ARTHUR ANDERSEN

(This case is based on reports in the print and electronic media. The case is meant for academic purpose only. The writer has no intention to sully the reputations of the corporates or the executives involved.)

ARTHUR ANDERSEN’S EARLY REPUTATION

The name of Arthur Andersen was once synonymous with honesty, integrity and uncompromising values in the auditing and accounting profession. The audit firm’s name stood tall even among the company of mammoth corporations for well over seven decades. However, with the change in circumstances, deteriorating value systems, low-moral standards and the never-ending greed of the firm’s hundreds of partners in the USA brought about its downfall in the beginning ...