Subject category:
Ethics and Social Responsibility
Published by:
IESE Business School
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