Arthur Andersen LLP

Arthur Andersen was a prominent accounting and consulting firm that emerged as a major rival to McKinsey in the 1980s and 1990s. The firm provided audit, tax, and consulting services until its eventual dissolution following its involvement in the Enron scandal.

CCI Score

-6.79

April 18

Latest Event

Ethical Failures in Accounting Practices

A retrospective case study detailing Arthur Andersen LLP's involvement in unethical accounting practices that contributed to its downfall following its role in the Enron scandal.

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COLLABORATOR

Arthur Andersen LLP is currently rated as a Collaborator.

-5 to -9 CCI Score

In this category, companies align with authoritarian practices mainly to avoid trouble or regulatory conflict. Their compliance is driven by self-preservation, resulting in minimal resistance even as they participate in oppressive systems.

Latest Events

AUG

01

2002

Ethical Failures in Accounting Practices
-4.12

A retrospective case study detailing Arthur Andersen LLP's involvement in unethical accounting practices that contributed to its downfall following its role in the Enron scandal.
-40

Business Practices and Ethical Responsibility

March 29

The case study emphasizes Arthur Andersen's questionable accounting and auditing practices that undermined ethical business standards and corporate governance, contributing to a broader erosion of accountability in the financial sector.

Ethical Failures in Accounting: The Arthur Andersen Case Study
JUN

15

2002

Arthur Andersen Convicted for Obstructing SEC Proceedings
-7.12

In 2002, Arthur Andersen was convicted for obstructing an official SEC proceeding by ordering the mass destruction of documents during an investigation into its relationship with Enron. This act significantly undermined corporate accountability and regulatory oversight.
-70

Business Practices and Ethical Responsibility

March 29

Arthur Andersen's deliberate destruction of documents to impede an SEC investigation reflects severe ethical misconduct in its business practices. This action not only violated regulatory requirements but also undermined transparency and accountability, contributing to an environment where corporate malfeasance may go unchecked.

U.S. v. Arthur Andersen, Llp, 02-21200.
JUN

01

2002

Criminal Conviction for Obstruction of Justice
-9.12

In June 2002, Arthur Andersen LLP was criminally convicted for obstructing justice in connection with its audit practices for Enron. This landmark case exposed major ethical lapses in business practices that contributed to a collapse in public trust and ultimately led to the firm's dissolution.
-90

Business Practices and Ethical Responsibility

March 29

The conviction for obstructing justice highlights severe breaches in ethical business practices. Arthur Andersen’s role in enabling fraudulent accounting practices, particularly for a major client like Enron, severely undermined corporate governance and public trust, marking it as a clear negative example in corporate ethical responsibility.

From Grace to Disgrace: The Rise and Fall of Arthur Andersen