Business law, ethics and social responsibility | BUSINESS LAW, ETHICS AND SOCIAL RESPONSIBILITY

  

Discussion Assignment

For this assignment write at least 300 words answering the following.

Oversimplifying the case of Enron and Arthur Andersen, Enron was using some accounting practices that were questionable. Because Arthur Andersen was an independent auditor, they were responsible for reporting any questionable accounting practices might be risky to the shareholders of Enron. The Security and Exchange Commission was responsible for requiring and publishing accurate information about Enron’s accounting information. In the end, a few Enron employees went to jail, and Arthur Andersen stopped doing business under that name. 

  • Identify what you      consider any conflicts of interest in the case of Enron and Arthur      Andersen.
  • What could have been      done to avoid the conflicts of interest you identified?
  • How would you change the      laws to correct the problems that came up in the Enron and Arthur Andersen      case? 
  • Explore how Enron and      Arthur Andersen might have been encouraged to act ethically other than      direct legal pressures. 
  • To what extent (if any)      should sustainability concerns and issues be incorporated in accounting      analyses?
  • When (if ever) should      organizational decisions with sustainability-related impacts and      significant associated cost-implications (savings or expenditures) be      shared with shareholders?

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