Management Planning of Arthur Anderson

1278 Words3 Pages
bulb-icon

Recommended: The importance of adaptive leadership

In this paper, the writer will evaluate the planning function of management within Arthur Andersen. Specifically, the paper will discuss at least one legal, ethical, and social responsibility issue that impacts Arthur Andersen. Additionally, this paper will analyze the impact these factors have on Arthur Andersen’s management planning. Finally, this paper will analyze at least three factors that influence Arthur Andersen’s strategic, tactical, operational, and contingency planning.

The firm of Arthur Andersen LLP was founded in 1913 by Arthur Andersen and Clarence DeLany and named Andersen, DeLany & Co. The firm later changed its name to Arthur Andersen & Co. in 1918. Arthur Andersen LLP, based in Chicago, Illinois, was one of the “Big Five” accounting firms who perform auditing, tax, and consulting services for large corporations, such as Enron. In 2002, pending the outcome of the Department of Justice prosecution for obstruction of justice, the firm agreed and voluntarily surrendered its licenses and rights to practice auditing and other financial services in the United States. These charges stemmed from the firms handling of the auditing of Enron, an energy corporation, which resulted in the loss of over 85,000 jobs, devaluation of Enron’s stock from over $90 per share to pennies, and the bankruptcy of Enron. When Arthur Andersen was indicted, the firm lost almost all of its clients and faced over 100 civil suits related to its audits of Enron and other companies, such as Sunbeam and WorldCom. Additionally, Arthur Andersen’s reputation was so badly tarnished that no company wanted its name on their audit. In a 2005 Supreme Court ruling, the conviction against Arthur Andersen was unanimously reversed for serious ...

... middle of paper ...

...ess. Enron and Arthur Anderson are prime examples of poor planning due to total disregard for the legal, ethical, and social issues that its executives are expected to follow.

In conclusion, this paper evaluated the planning function of management within Arthur Andersen. Specifically, the paper discussed one legal, ethical, and social responsibility issue that impacted Arthur Andersen. Additionally, the paper analyzed the impact these factors have on Arthur Andersen’s management planning. Finally, the paper analyzed three factors that influenced Arthur Andersen’s strategic, tactical, operational, and contingency planning.

References

Arthur Andersen (2008). Retrieved March 3, 2008, from http://en.wikipedia.org/wiki/ Arthur Andersen

Robbins, S.P. (2005). Organizational Behavior (11th Ed). Upper Saddle River,

New Jersey: Pearson Prentice-Hall.

Show More
Related

  • A Corporate Code of Ethics is Not Enough

    2353 Words  | 5 Pages

    Investors and the media once considered Enron to be the company of the future. The company had detailed code of ethics and powerful front men like Kenneth Lay, who is the son of a Baptist minister and whose own son was studying to enter the ministry (Flynt 1). Unfortunately the Enron board waived the company’s own ethic code requirements to allow the company’s Chief Financial Officer to serve as a general partner for the partnership that Enron was using as a conduit for much of its business. They also allowed discrepancies of millions of dollars. It was not until whistleblower Sherron S. Watkins stepped forward that the deceit began to unravel. Enron finally declared bankruptcy on December 2, 2001, leaving employees with out jobs or money.

    Read More

  • The Corporate Culture In Enron's Case

    436 Words  | 1 Pages

    The CFO, Andrew Fastow, systematically falsified there earnings by moving company losses off book and only reporting earnings, which led to Enron’s bankruptcy. Any safeguards or mechanisms that were in place to catch unethical behavior were thrown out the window when the corporate culture became a situation where every person was looking out for their own best interests. There were a select few employees that tried to get in front of the unethical accounting practices, but they were pushed aside and silenced. The corporate culture at Enron became a place where if an employee would not make unethical decisions then they would be terminated and the next person that would make those unethical decisions would replace them. Enron executives had no conscience or they would have cared for the people they ended up hurting. At one time, Enron probably was a growing company that had potential to make a difference, but because their lack of social responsibility and their excessive greed the company became known for the negative affects it had on society rather than the potential positive ones it could have had. Enron’s coercive power created fear amongst the employees, which created a corporate culture that drove everyone to make unethical decisions and eventually led to the downfall and bankruptcy of

    Read More

  • Kaufman's Organizational Elements Model

    1050 Words  | 3 Pages

    Kaufman, Roger and Stone, Bruce. Planning for Organizational Success: A Practical Guide. John Wiley & Sons, Inc.: New York, 1983.

    Read More

  • Case Study of Tesla Motors Inc.

    1187 Words  | 3 Pages

    The success of any organization just as the Tesla Motor largely depends on the planning of the activities by the management team in the company. A good performance is always attributed to the planning strategy that a certain company has. The following are therefore four factors that affect the planning and performance of the company.

    Read More

  • Analysis of the Enron/Arthur Anderson Scandal

    1550 Words  | 4 Pages

    Enron and Arthur Anderson were both giants in their own industry. Enron, a Texas based company in the energy trading business, was expanding rapidly in both domestic and global markets. Arthur Anderson, LLC. (Anderson), based out of Chicago, was well established as one of the big five accounting firms. But the means by which they achieved this status became questionable and eventually contributed to their demise. Enron used what if often referred to as “creative” accounting methods, this resulted in them posting record breaking earnings. Anderson, who earned substantial audit and consultation fees from Enron, failed to comply with the auditing standards required in their line of work. Investigations and reports have resulted in finger pointing and placing blame, but both companies contributed to one of the most notorious accounting scandals in history. There remains much speculation as to what steps could and should have been taken to protect innocent victims and numerous investors from experiencing the enormous loses that resulted from this scandal.

    Read More

  • Levels Of Planning

    1709 Words  | 4 Pages

    Planning is an essential process in today’s organizations. Based on the three types of managers: top-level (strategic managers), middle-level (tactical managers), and frontline (operational managers), exist three corresponding levels of planning: strategic, tactical, and operational. The purpose of this essay is to focus on the strategic level of planning for the Ford Motor Company; a leader in the global automobile industry. Strategic planning, according to Bateman and Snell (2009), “involves making decisions about the organization’s long-term goals and strategies” (p. 137). This paper will elaborate on six key influential factors: economic, environmental, competition, foreign policy, domestic policy, and innovation; that shape this corporation’s strategic plan. Finally, a SWOTT analysis will be conducted covering the strengths, weaknesses, opportunities, threats, and trends, that the Ford Motor Company has in relation to its business environment.

    Read More

  • Leadership and Management in Today's Business

    1812 Words  | 4 Pages

    “Management can be defined as the attainment of organizational goals in an effective and efficient manner through planning, organizing, staffing, directing, and controlling organizational resources” (Daft, 2011, p. 15). Management is a set of well-known processes that ensure an organization has the resources to predictably perform well (Kot...

    Read More

  • Fayol’s Five Principles of Management

    1055 Words  | 3 Pages

    By comparison, Fayol’s five element of management was very similar to the modified version. There were three elements still remain in the new version of management, plannin...

    Read More

  • What Are The Ethical Issues In Enron

    874 Words  | 2 Pages

    Enron was on the of the most successful and innovative companies throughout the 1990s. In October of 2001, Enron admitted that its income had been vastly overstated; and its equity value was actually a couple of billion dollars less than was stated on its income statement (The Fall of Enron, 2016). Enron was forced to declare bankruptcy on December 2, 2001. The primary reasons behind the scandal at Enron was the negligence of Enron’s auditing group Arthur Andersen who helped the company to continually perpetrate the fraud (The Fall of Enron, 2016). The Enron collapse had a huge effect on present accounting regulations and rules.

    Read More

  • Mintzberg Essay

    1720 Words  | 4 Pages

    It is disputable that management is a vital part for businesses to be successful. A sensible manager can lead his firm to operate in a proper way. Nonetheless, the field of management has not really solved the fundamental question for around half a century, ‘What does a manager actually do?’ In order to administer a company, Fayol (1949) holds the view that management should interact with subordinates in five basic elements. They are planning, organising, commanding, coordinating and controlling. Although these five words have dominated management vocabulary after Fayol presented them, there are still many people argue his perspective over this century. In this essay, I will discuss Fayol’s viewpoint critically through an analysis of his and others sight on management, outline the rationale behind Fayol’s argument and demonstrate further perspective on management.

    Read More

  • The Rise and Fall of Arthur Andersen

    1602 Words  | 4 Pages

    A month after the twin towers fell in New York City the nation's focus was shifted to the Enron scandal. Kenneth Lay and Jeffery Skilling were names in the press almost every day. Enron filed bankruptcy and thousands lost their jobs and pensions. Another company involved in the scandal was Arthur Andersen, an accounting firm; Enron was their client. Arthur Andersen continued to perform bad audits even after a warning from SEC. If Arthur Andersen employees had been ethical, after the warning, the Enron Scandal would not have had led to the conviction and dissolution of the Arthur Andersen accounting firm.

    Read More

  • The Modern Manager and Fayol's Managerial Functions

    1574 Words  | 4 Pages

    This essay explores the work of a modern manager and further analyses it to understand its relevance with Fayol’s managerial functions. The significance of the economic and technological conditions in the organisation’s general environment upon his work is also subsequently discussed. On top of that, a comprehensive evaluation and comparison between various school of thoughts on the discussed topics will also be presented, fully supported with evidence.A manager is defined as someone who coordinates and overlooks the work of other people so that organisational goals can be accomplished (Robbins, Bergman, Stagg, and Coulter ,2012). Due to the consistently evolving nature of the economy, a clear guideline for a manager’s work ceases to exist. Each manager performs different tasks according to their work. Nevertheless, modern management practice generally revolves around the paradigm of Henry Fayol’s key managerial functions of planning, organizing, leading and controlling despite experiencing various trajectories throughout the years. This notion is supported by Carroll and Gillen (1987), who affirmed that classical functions still represent the most useful way of conceptualizing the manager’s job.

    Read More

  • Management Planning Paper

    1291 Words  | 3 Pages

    In management, each of the four functions, planning, organizing, leading, and controlling, are crucial to the development of any business. Involving employees in the planning process help them understand the goals of the organization. Planning is analyzing a situation, determining the goals that will be pursued, and deciding in advance the actions needed to pursue the goals. This paper will evaluate the planning function of the Halliburton Company and analyze the impact that legal issues, ethics, and corporate social responsibilities have on management planning along with examples of each, and analyze three factors that influence strategic, tactical, operational, and contingency planning.

    Read More

  • The Work and Skills of Managers within the Organization

    1837 Words  | 4 Pages

    Henri Fayol (1841-1925) first proposed the ideas of an ordered set of management functions (Robbins, Bergman, Stagg, Coulter 2003, p. 41). Through Fayol¡¯s involvement as managing director of a large French coal-mining firm he developed a framework of management activities (Robbins, et al., 2003, p. 41). The functions of management that Fayol devised included planning, organising, commanding, co-ordinating and controlling (Lamond 1998, p. 6). The idea of core functions that pervades every level of management was revolutionary when Fayol first wrote it and is still used as a framework for many textbooks (Robbins, et al., 2003, p. 9). Through refinement of Fayol¡¯s five management functions it is now recognised that there are four distinct management function...

    Read More

  • Management is comprised of four principal functions: planning, organizing, leading and controlling

    839 Words  | 2 Pages

    The first function of management is planning. Planning is a process that managers use to identify and involve goal setting and decide the best way to achieve the goal.(Bartol 2007) Planning connect the gap between where we do, where we intend to go. It predict the possible things to happen which would not otherwise happen (MSG 2012). There are several steps to the planning process, which are determine the goals of the organisation, evaluate the current position, consider possible future conditions, identify possible alternative actions and choose the best. Planning is the criteria thinking through goals and making decision to achieve the goal of the organisation’s objective, which requires a systematic way. Also objectives focus the managers how to achieve the final result as managers have to predict anything will happen, avoid the problem and fight back to competitors. An example of planning, which is the President Canon Inc Tsuneji Uchida and lead Canon Company become the no.1 in the global business (Canon.Inc 2011). Tsuneji Uchida has to understand what is the company objective and goal. First, make decision to protect the position and the aim of canon, improve the operation more diversity. Second, he creates the new design of camera and new technology, he plan to do these things to maximise profit.

    Read More

More about Management Planning of Arthur Anderson

Open Document