Unethical Behavior

Topics: Finance, Internal Revenue Service, Financial Accounting Standards Board Pages: 2 (609 words) Published: June 14, 2011
Impacts of Unethical Behavior
Unethical actions can affect millions of individuals creating hardship in personal lives. The Enron case directly created this action. The accountants are given the duty of figuring and providing information of a company’s financial standing. This information provides investors an important resource in making the decision of investing in a company, or not investing in a company. The plague of greed, poor decisions, and unethical behavior flourishes at times through a company. This plague can potentially affect millions of serious investors. This is the root of the Enron case. The old saying, one small lie creates a bigger lie, was the beginning of Enron’s downfall. People of authority made the decision to lie on the on the income statement which over time this small lie turned out to be a multi-billion dollar crumble. Billions of dollars of investors money was taken as the company fell to nothing. In this case Authur Anderson was a key contributor to the endless unethical behavior and lies that flourished in this case. This person was in charge of the auditing and lied about the untruthful information regarding the income and equity value. Adding on to that, Enron eventually released that they were involved in numerous partnerships which were only created to hide the debt and trading losses. There were internal sources that did try to warn investors about the unethical accounting practices but nobody really listened or comprehended the warning. This lack of comprehension and possible communication crushed the company’s foundation and millions of investors lost their financial investment. I believe I would have noticed an error like this, or at least noticed it before it reach the level it did of billions. I would have informed the authority of the company and continued up the chain of command until action was taken. This type of action may cost me my job, but it would have saved thousands of other jobs. This outlandish, unethical,...
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