Product details

By continuing to use our site you consent to the use of cookies as described in our privacy policy unless you have disabled them.
You can change your cookie settings at any time but parts of our site will not function correctly without them.
Compact case
Case
-
Reference no. BE-0219-E
Published by: IESE Business School
Originally published in: 2023
Version: 4/7/23
Length: 2 pages
Data source: Generalised experience

Abstract

The case presents a letter written in 2023 by a former MBA student to his/her professor of business ethics. It is based on a real story. The letter presents a situation of accounting fraud and also refers to the Enron accounting scandal discussed in IESE mini-case study: 'Jeffrey Skilling, Bernie Madoff & the other smart guys of the room'. This document has three main objectives: a) to show the distorting psychological factors that can cause the failure of individuals and organizations supposed to control and prevent corporate misbehavior, b) highlighting the importance of an organizational culture and practice based on the virtues of justice and prudence, c) highlighting that dynamics associated with 'cooking accounting numbers' are unfortunately relatively frequent in the business world. The letter focuses on some psychological factors affecting the behavior of accounting professionals of two companies (Alpha, responsible for external accounting; Gamma, responsible for internal accounting) and their problematic personal and professional interactions with the customer's employees.

Time period

The events covered by this case took place in 2023.

Geographical setting

Countries:
Saudi Arabia; United Arab Emirates; Hong Kong; China

About

Abstract

The case presents a letter written in 2023 by a former MBA student to his/her professor of business ethics. It is based on a real story. The letter presents a situation of accounting fraud and also refers to the Enron accounting scandal discussed in IESE mini-case study: 'Jeffrey Skilling, Bernie Madoff & the other smart guys of the room'. This document has three main objectives: a) to show the distorting psychological factors that can cause the failure of individuals and organizations supposed to control and prevent corporate misbehavior, b) highlighting the importance of an organizational culture and practice based on the virtues of justice and prudence, c) highlighting that dynamics associated with 'cooking accounting numbers' are unfortunately relatively frequent in the business world. The letter focuses on some psychological factors affecting the behavior of accounting professionals of two companies (Alpha, responsible for external accounting; Gamma, responsible for internal accounting) and their problematic personal and professional interactions with the customer's employees.

Settings

Time period

The events covered by this case took place in 2023.

Geographical setting

Countries:
Saudi Arabia; United Arab Emirates; Hong Kong; China

Related