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

West Indies looking for upturn in their one-day form

first_imgHARARE, Zimbabwe (CMC) – Captain Jason Holder hopes the key areas addressed during the recent one-week camp in South Africa will see West Indies turn the page on their dodgy One-Day International form, in the Tri-Nations Series here which bowled off yesterday.West Indies were swept 3-0 by Pakistan last month and have now lost 12 of their last 16 games in the last four bilateral series. They were good enough to reach the final of the Tri-Nations Series against Australia and South Africa in the Caribbean earlier this year, but lost to the Aussies.“I think it is a situation where we need to come together as a team. We’ve struggled in the last few one-day series in terms of batting the 50 overs and that is one area we have addressed,” Holder said ahead of his side’s first game tomorrow.“In terms of the bowling, we need to be a lot better in the first power-play and then we have to close in the last 10 overs. Those are the significant areas we have paid some attention to.“I think once we do that and we string some big partnerships (together) – in the past I think we have found ourselves getting a lot of starts but not carrying on – we leave less for the middle and lower order to do.”West Indies open their campaign tomorrow against Sri Lanka before taking on the hosts on Saturday in their second outing.Last year, the Caribbean side suffered a 3-0 whitewash away to the Sri Lankans and Holder said they were expecting a strong challenge from them again, along with a tough showing from Zimbabwe.“It’s going to be tough. Obviously they are two good teams. Sri Lanka play good cricket and obviously are of a higher rank and Zimbabwe have a point to prove,” the all-rounder explained.“They are playing in their backyard as well so they will be (familiar) with their conditions. It’s a situation where we have to assess as early as possible and go out and play some good aggressive cricket.”West Indies endured a long difficult tour of the United Arab Emirates recently, where they were trounced in the Twenty20, one-day and Test series by Pakistan.Their only success came in the final Test in Sharjah when they produced an admirable performance to win by five wickets.Holder said the camp in Potchefstroom had been a great chance for the unit to re-assess.“We had a good week in Potchefstroom. I thought the guys had a few days off to catch themselves and recuperate after the long series in Dubai,” he said.“It’s just a situation where we got what we wanted out of the training camp and moving into the (Tri-Nations Series) I think we are much better prepared.”last_img read more

Shooting shift carries Wisconsin over Indiana, 69-58

first_imgWisconsin is a scary team when it shoots well. The Badgers are also a scary team when they shoot poorly. It’s just a different type of scary, one the Badgers can’t prefer.That polarization was on full force at the Kohl Center, defining the two halves of basketball between Wisconsin and Indiana Tuesday night. It wound up being strong enough in the Badgers’ favor during the second half to lead Wisconsin in its 69-58 victory over the Hoosiers.In doing so, it was another rendition displaying just how the Badgers (23-5, 10-5) win games at this point in the season. For Wisconsin, with an improved defense from the doldrums that garnered five losses in six games, winning games in February seems to depend almost directly on the Badgers’ shooting tendencies.Although it ended well for UW, it didn’t begin pretty. That ugly pole of horror was on display for the first 20 minutes as Wisconsin netted just 19 points — trailing Indiana’s 29 — on seven buckets for a first half rate of just 25.9 percent.The frustration could have prompted a furious Bo Ryan in the locker room, with his team down 10 to the unranked, struggling Hoosiers (15-12, 5-9).“The halftime talk had nothing to do with threats, violence, none of that,” Ryan said. “It was, ‘We know what we can do, we’ve just gotta do it.’”They did, and then some.With their most prevalent three-point shooter Ben Brust continuing to struggle in the first half, it was almost too perfect that his spark lit the fire under the lifeless Badgers.After missing all four attempts from beyond the arc in the first half, a trend of Brust bricks had swelled. Wisconsin’s sniper had made just one of his last 17 tries from distance over his last five halves of basketball.But then he made one.“I knew it was only a matter of time,” Brust said. “I knew it was going to start, so I was just like, ‘Can it just start now?’”Just 45 seconds after he hit the first one, Brust squared away and connected on another. Thoughts of that scoreless first half were far from the Kohl Center.No more than two-and-a-half minutes passed by before Brust hit his third triple of the second half. This one put Wisconsin up 41-38, a lead it would never surrender, largely because its shooting took off even stronger.“It was definitely good to get a couple to go down,” Brust said. “I think it ignited this team and just trickled down to everyone else … It just kind of got us going and opened things up.”Following Brust’s triad of triples, Wisconsin made six of its next nine shots, extending its lead to its highest point at 58-43, and just about everyone got involved.Sam Dekker and Bronson Koenig found a few layups before Josh Gasser and Traevon Jackson found three pointers. In sum, Wisconsin shot nearly 62 percent in the second half — going 13-for-21 from the field. After just a 1-for-10 performance from beyond the arc in the putrid first half, the Badgers made six of 11 threes in the final 20 minutes.When a team is clicking like the Badgers were in that second half, pressure was sure to increase for the visiting Hoosiers. An array of Badgers’ buckets can seemingly tighten the rim on the opposite end of the floor as Indiana tried to keep pace.Then as they rushed to get stops on the defensive end, Wisconsin’s end of the floor seemed a little more wide open each time. Their shooting percentage justly followed suit.“A lot of times you’re getting ready for one or two guys to be very good passers. Their whole team is,” Indiana coach Tom Crean said. “The bottom line is: They got some good looks because we were in rotation a little bit.“They got hot. The basket started looking pretty big for them.”Coupled with a defense that didn’t allow a single 30-point half — which they did twice when in losing fashion during the January game in Bloomington, Ind. — Wisconsin’s hot shooting now seems good enough to take them wherever they please.“When the ball goes through the hoop, it makes a lot of things easier,” Dekker said. “People think it’s some crazy magic that happened, but no. We made shots and made some plays … we just ran our plays and it worked.”last_img read more