Arthur Andersen
Chapter four of our text explains the mandated requirements for legal compliance. The following requirements apply to the Arthur Andersen case. Certainly, accountants are very important in this mix because they are the watchmen for the system, making sure that the books are correct and transparent so that there will be confidence in the system by all of the stakeholders. The tragedy of Arthur Anderson (as well as in the present recession) is that the watchers have falsified the books. In the view of the author, transparency is a major component of faith in the financial system for all stakeholders. When auditing agencies act illegally and unethically, it shakes faith in the system and prevents the normal operation of capitalism because such uncertainty makes it virtually impossible to have normal business planning and day-to-day functioning.
Laws and incentives are instituted by governments to set minimum standards for business conduct in order to preserve faith in the system and to ensure that everyone has a fair chance to make an honest profit. This is the reason for audit companies such as Arthur Andersen. They can detect when corruption creeps in due to irregularities in the books (Institutionalization of business ethics, 2010,, 95). Outside of the accounting system, the civil and criminal law systems provide venues for facilitating compliance. Civil law lays out rights and duties and are enforced by lawsuits while criminal law prohibits certain actions (such as fraud) and provides for punishment measures (such as prison) for violations (ibid., 96).
Ethics and their maintenance is really not the purview of the legal compliance. Law is more concerned about determining the appropriateness of situation. In other words, the laws lay the groundwork for responsible business activities. These fall into five basic categories: 1) regulation of competition, 2) consumer protection, 3) promotion of safety and equity, 4) environmental protection, 5) compliance encouragement (ibid. 97).
Probably, companies such as Enron...
The first three organizations in line to recuperate their funds were Citigroup, J.P. Morgan and General Electric Group. They had been offering financial solutions and encouragement to purchase the WorldCom stock based on a favorable business relationship. However, at the time when bankruptcy procedures were commenced, the three organizations recognized their losses and intended to recuperate them. A succinct presentation of the period surrounding the crisis could be reveled by
To critically investigate the current state of international business relationship development literature. 2. To explore the characteristics that determines sustainable international business relationships within the Libyan business context-from the Libyan point-of-view. 3. To present a model based on the findings from the two objectives above. This model will serve two main functions: (I). It will help fill in gaps in the current literature relating to the development and maintenance of business
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Enron could engage in their derivative trading strategy with no fear of government intervention because derivative trading was specifically exempted from government regulation. Due in part to a ruling by the Commodity Futures Trading Commission's (CFTC) chairwoman, Wendy Graham, derivatives remained free of regulatory oversight. Ms. Graham, wife of Texas senator Phil Graham, made this ruling 5 weeks before resigning as chairwoman of the CFTC and joining the Enron Board
It should not be treated as a separate exercise undertaken to meet regulatory requirements." (ICA, 29) Here is expressed a philosophical impetus that drives the focus of this research, that such compliance which will generally concern matters such as corporate accounting, the practice of internal oversight and the practice of financial transaction must be considered inextricable from other aspects of practical, procedural and legal operation in terms of its
This presented the troubling consideration that many of the current standard-bearers for physical excellence were the product of performance enhancing drug use. Moreover, this cast a dark shadow on what have been regarded as some of the game's greatest recent accomplishments, which had been achieved through cheating. In that vein, Canseco's claim was succeeded by an admission that seemed to justify this reproach. Mark McGwire, Canseco's former Oakland Athletic teammate,
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