It’s no secret that in the last 20 years big box retailers like WalMart have run
ID: 433323 • Letter: I
Question
It’s no secret that in the last 20 years big box retailers like WalMart have run the little guys out of business. Part of what makes our economic system great is the choices we have and the diversity of products. However, can a company get too big? For this post you will want to: 1. Find a news article discussing an ethical issue involving companies that haven’t always acted ethically that has taken place in the last 20 years. 2. Summarize and state your opinion on the topic. 3. Ask a question to engage peers
Explanation / Answer
1.Enron scandal is one of the scandal that involve ethical issues like misrepresentation of financial facts which led to bankruptcy of the company.
2. It is one of the largest bankruptcy case the chief financial officer of the Enron misguided other executives of the company in following high-risk accounting practice. The auditor of the company, Arthur Andersen also ignored the issue by destroying the documents that would have revealed the financial situation of the enron during the investigation procedure. According to my opinion the issue could have been avoided if the auditor would have raised the alarm Bell and cautioned all the shareholders in order to take appropriate control action.
3. Question to be asked to the peer
What should have been done in order to avoid bankruptcy?
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