Arthur Andersen Essay

1152 WordsMay 21, 20135 Pages
Arthur Andersen: Questionable Accounting Practices Ethics and Advocacy for HR Pro: HRM522 Jacinta Roper Professor Jack Huddleston February 16, 2013 Review the mandated requirements for legal compliance (from Chapter 4) and determine which requirements apply to the Arthur Anderson case. Explain your rationale There are a number of mandated requirements for legal compliance that govern businesses and institutions. These requirements were put in place to govern the policies and ethical codes of businesses as well as to encourage responsible business activities, and eliminate any possible conflicting agendas of misplace priorities. “Outright greed has caused many companies throughout history to conduct business in dubious, dangerous or intentionally exploitative ways (Ingram, 2013). Hence the need for laws to regulate business conduct. Some of the laws used to govern business activity are in one way or another associated with the following: Laws regulating competition Competition amongst businesses can be intense at times resulting in the use of unethical, unfair and questionable tactics. Unfair practices are sometimes used to monopolize the market or industry in order to secure their market position and ensure the survivability of their organization. For this reason pro-competitive legislation Laws were put in place to encourage competition and prevent any activity that would seek to restrain trade. The Sherman Antitrust Act of 1890 was also a law that was enacted to place limitations on competitive activities. Laws protecting consumers Consumer laws were put in place to protect consumers and to regulate the accuracy of product information being provided. Laws like the consumer product safety act, truth in lending act and nutritional labeling and education act were devised with the consumer in mind and

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