Case Study Arthur Anderson

Case Study:
The Rise and Fall of Arthur Andersen
Chapter 5

Anthony D. Davis, Sr.
                                                                                                            Keiser University
                                                                                                            MBA 572
                                                                                                            Dr. Anne Nelson
                                                                                                            May 21, 2010
      A small company that was founded by two men in 1913 grew to become a formidable accounting firm.   His name was Arthur Andersen and his accounting firm that was cofounder with partner Clarence Delaney, who later left the company in 1918.   Other was a humble man, who adapted the motto “think straight, talk straight" (Dyck/Neubert 2010p 164).   To many of the people that knew him and worked with him, Anderson was known as a man of conviction.   His reputation led him to always do the right thing but as we are aware of name alone does not guarantee that a great company with great stature and reputation can’t lose its way because of greed.   There is a scripture in the Bible that paraphrased states there are three things that cause a man to fall.   The first is lust of the eyes, and then lust of the flesh and the last the pride of life.   Willingly, the Arthur Andersen Company fell in each one of those areas.   They went from a company with a strong reputation and integrity to one that saw only profits.   And it was the pursuit of profits caused those partners to vacate their high standard and adapt a life and practice of deceit.   It was finally pride; that part of the person that refuses to acknowledge their wrongdoing that brought it down.   But does a company have to fall?   The answer is no.

      When entrepreneurs have an idea, trade, or vocation, and act on it to establish a company they maintain...