“Cooking the books” and otherwise conducting unethical accounting practices is a serious problem, especially in publicly traded companies. One of the most infamous examples is the 2001 scandal that enveloped American energy company Enron, which for years inaccurately reported its financial statements and its auditor, accounting firm Arthur Andersen, signed off on the statements despite them being incorrect. When the truth emerged, both companies went out of business, Enron’s shareholders lost $25 billion, and although the former “Big Five” accounting firm had a small portion of its employees working with Enron, the firm’s closure resulted in 85,000 jobs lost.

Based on your knowledge of ethical decision-making, what should organizations do to prevent such ethical scandals from happening again?

Answer rating: 100% (QA)

Preventing ethical scandals like the Enron case involves implementing a comprehensive ethical framework and fostering a culture of integrity within organizations Here are some key measures that can be ... View the full answer