ABSTRACT
Beginning with the unraveling of Enron's financial position in October 2001, the U.S. marketplace has been stained by a rash of ethical scandals that continues to unfold. The collective fallout from the questionable business behavior that has occurred is enormous. Enron, WorldCom, Tyco, Qwest, and Global Crossing alone have accounted for the loss of approximately one-half trillion dollars in shareholder wealth through their aggregate misdeeds (Horovitz 2002). Between 1997 and 2002, the frequency of earnings restatements dramatically accelerated (approximately one in ten Fortune 1000 companies restated), resulting in well over $200 billion in write-downs (Byrnes et al. 2002). Not included among these damages is the pain (both financial and psychological) caused to employees, customers, suppliers, and host communities. In the wake of such incidents, several common queries have been sounded:
What do these events signify about contemporary business practice?
What actions can prevent such seemingly widespread business scandal?
What do business leaders need to do to imbue the system with greater integrity?
