Topic > Arthur Anderson Management Planning - 1278

In this article, the author will evaluate the management planning function within Arthur Andersen. Specifically, the article will discuss at least one legal, ethical, and social responsibility issue that impacts Arthur Andersen. Furthermore, this article will analyze the impact these factors have on Arthur Andersen's management planning. Finally, this article will analyze at least three factors that influence Arthur Andersen's strategic, tactical, operational, and contingency planning. The firm 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, headquartered in Chicago, Illinois, was one of the "Big Five" accounting firms that provided audit, 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 to and voluntarily relinquished its licenses and rights to practice auditing and other financial services in the United States. These charges stemmed from the company's handling of the audit of Enron, an energy company, which resulted in the loss of more than 85,000 jobs, the devaluation of Enron stock from more than $90 per share to pennies, and the bankruptcy of Enron. When Arthur Andersen was indicted, the firm lost nearly all of its clients and faced over 100 civil lawsuits related to its audits of Enron and other companies, such as Sunbeam and WorldCom. Furthermore, Arthur Andersen's reputation was so badly tarnished that no company wanted his name included in their audit. In a 2005 Supreme Court ruling, the conviction against Arthur Andersen was unanimously overturned due to serious... middle of paper...ess. Enron and Arthur Anderson are prime examples of poor planning due to complete disregard for the legal, ethical and social issues that its executives are expected to follow. In conclusion, this article has evaluated the management planning function within Arthur Andersen. Specifically, the document discussed a legal, ethical, and social responsibility issue that impacted Arthur Andersen. Furthermore, the paper analyzes the impact these factors have on Arthur Andersen's management planning. Finally, the article analyzes three factors that influenced Arthur Andersen's strategic, tactical, operational and emergency planning. References Arthur Andersen (2008). Retrieved March 3, 2008, from http://en.wikipedia.org/wiki/ Arthur AndersenRobbins, S.P. (2005). Organizational Behavior (11th edition). Upper Saddle River, New Jersey: Pearson Prentice-Hall.