Lecture explores business ethics after collapse of accounting firm

first_imgLarry Katzen discussed the collapse of the accounting company Arthur Andersen on Tuesday afternoon, as part of the annual Ethics Week hosted by the Mendoza College of Business. Katzen, who was a managing partner at the company when it was indicted for obstruction of justice in association with Enron, said the media played a large part in the company’s downfall.“Everything people learned about the Arthur Andersen and Enron case was what they read in the papers and saw on TV,” Katzen said. “It all said that Arthur Andersen did a terrible auditing job, and this was responsible for the demise of the company.” Emmet Farnan Larry Katzen speaks Tuesday afternoon. Katzen previously worked for Arthur Andersen, a company indicted for association with Enron.Katzen disputed this portrayal, arguing there was no evidence Arthur Andersen did anything wrong during the auditing process.As an accounting firm for Enron, Arthur Andersen had millions of documents subpoenaed after Enron was exposed for accounting fraud, Katzen said. However, he challenged the accusation that Arthur Andersen shredded important documents prior to the subpoena.“It’s a requirement that before you get an indictment, you must destroy all documents that are irrelevant to the auditors,” he said.Furthermore, Katzen said Enron’s fraud was mainly related to special purpose entities, which another accounting firm was responsible for auditing. Katzen said Arthur Anderson, throughout his 35 years at the company, maintained a high ethical standard.“The reason why I joined Arthur Andersen was their integrity,” he said. “These people walked away from clients that they felt were not operating under conservative accounting principles.”Katzen said the effects of the scandal were devastating. Within 90 days of the indictment, Arthur Andersen had lost its right to audit and was out of business.“Eighty-five thousand people lost their jobs because of Arthur Andersen’s association with Enron,” he said.Although Katzen said he was about to retire right before the scandal hit, he stayed on for longer in order to help other employees find new jobs.“I can proudly say that almost all 85,000 people have landed on their feet well and have done great things in their new organizations,” he said.Katzen said he learned from this experience “to do the right thing, no matter what the political ramifications might be.” In addition, Katzen said his decision to delay retirement helped him learn the sacrifice that is often necessary for the greater good of the company.“You will go through situations where you have to make tough decisions and must make personal sacrifices,” he said.Katzen also said his desire for new knowledge and strategies helped him to have a long and accomplished career. Up until his retirement, he regularly attended new training sessions and workshops, he said.“The only way you can stay ahead of this game throughout your entire career is to continually learn new things,” he said. “Don’t get soft and lean on your past. You have to always rise to the top.”Finally, Katzen said a company must have a culture that values integrity in order to be successful.“The common culture is the glue that holds an organization together,” Katzen said.Ethics Week at the Mendoza College of Business will continue tomorrow with the keynote address, to be delivered by Susan Ochs, a senior fellow and founder of the Better Banking Project. The lecture, titled “Managing Mindset: The Key to Better Corporate Behavior,” will take place in Giovanini Commons at 4:30 p.m.Tags: Arthur Andersen, Enron, Ethics week, Larry Katzen, mendoza college of businesslast_img read more

Cannabis gummy bears could be banned under law reform

first_imgNewsHub 9 May 2019Family First Comment: Far more to worry about than just gummi bears.This shows just how naïve OR misleading the Greens are being around the real risks of cannabis products. #saynopetodopeGreen MP Chlöe Swarbrick has brushed off National’s concerns around cannabis-infused edibles, suggesting most types will likely be banned.National’s drug law reform spokesperson Paula Bennett said cannabis-infused edibles could be “dressed up so they’re appealing to young people and accidental use is of real concern”.Swarbrick wouldn’t confirm cannabis-infused gummy bears would definitely be banned, but said there was consensus among the Greens, Labour and New Zealand First that protecting children and displacing the black market were top priorities.“In line with all of those things, it’s pretty evident that we will be following what other jurisdictions have done in terms of banning or ensuring that we won’t have gummy bears.”Swarbrick said there’s no way with the Government’s “health-based approach” to drug reform that “we would be enabling products that could be argued as targeted towards children”.She said there will be “nothing to glorify the consumption of cannabis” – and actually, “quite the opposite because there will be public education campaigns about the harms”.Swarbrick wouldn’t confirm cannabis-infused gummy bears would definitely be banned, but said there was consensus among the Greens, Labour and New Zealand First that protecting children and displacing the black market were top priorities.“In line with all of those things, it’s pretty evident that we will be following what other jurisdictions have done in terms of banning or ensuring that we won’t have gummy bears.”Swarbrick said there’s no way with the Government’s “health-based approach” to drug reform that “we would be enabling products that could be argued as targeted towards children”.She said there will be “nothing to glorify the consumption of cannabis” – and actually, “quite the opposite because there will be public education campaigns about the harms”.Comparing cannabis-infused lollies to alcohol-soaked lollies, Bennett said: “You’re not going to get absolutely drunk off a couple of vodka-soaked lollies, but you can get absolutely wasted on a few concentrated marijuana [edibles].”READ MORE: https://www.newshub.co.nz/home/politics/2019/05/cannabis-gummy-bears-could-be-banned-under-law-reform.htmllast_img read more