Arthur Andersen LLP was the brainchild of Arthur Andersen who was born in Plano, Illinois in 1886 (Arthur, 2006). Arthur Anderson was orphaned at at age sixteen and studied accounting at Northwestern University (Arthur, 2006). When Andersen was twenty-eight years old he purchased the Audit Company with his business partner, Clarence M. DeLany (Arthur, 2006). DeLaney left the business in 1918 and the firm changed it’s name to Arthur Andersen & Co. Anderson was known as a very ethical businessman and accountant, and he ran the business under the motto of “think straight and talk straight” (Arthur, 2006). In order to live up to his high moral standards, Anderson refused to certify accounts that has any questionable activity, even when pressured by some of his largest clients. Even thought these practices were deemed to conservative by many competitors, the practices were effective for the company, and the company continued to grow over the years. Arthur Anderse...
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...hole, the ruling also caused 85,000 employees to lose their jobs worldwide and has a drastic affect on Enron’s stock.
Arthur Anderson is an excellent example of the downturn a business can take as soon as it begins to compromise its morals. As seen by the history of Anderson, the business was founded and an honorable and upright business. The crisis spanned over a large period of time, building up to the climax of the Enron scandal. There were several legal and ethical issues that were a result of the loose relationship that Anderson decided to have with some of it’s prestigious clientele. Arthur Anderson LLP. made many unethical business choices that let to greater consequence than the company could have ever imagined. Anderson is an excellent reminder of the importance of maintaining ethical and moral standards in the business world today.
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