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Arthur Andersen case study
Arthur Andersen case study. The write should research about role Joe Berardino need to play in this situation and write his answers according to instructions.
Arthur Andersen case study-role Joe Berardino need to play in this situation
Arthur Andersen (A) “Nothing…is duller than accounting––until someone is defrauded. And after every modern financial disaster… investors have tended to ask the same question: where were the auditors?”1Joseph Berardino, CEO of Arthur Andersen, slept peacefully in a hotel room in Tokyo on November 28th, 2001 when he was suddenly awakened by a phone call from one of his colleagues in New York City. “The Justice Department is thinking of indicting Andersen, Joe,” said one of his partners.
Berardino was instantly awake.Berardino had remained upbeat about the future of Andersen since he became that company’s CEO six months earlier.
He picked up the phone to call David Tabolt, chief spokesman for Andersen, to discuss communication options, especially with the media. “David, it’s Joe, how should we respond to questions about this problem?”
Case Questions
1.How does the changing environment for business affect Arthur Andersen’s ability to communicate in this situation?
2.Where is the firm most vulnerable, from a communications standpoint?
3.Who needs to be involved in discussions about how to communicate in the face of the SEC investigation of Andersen?
4.What role will Joe Berardino need to play in this situation?
5.What advice would you give Mr. Berardino if you had received his call fromTokyo instead of David Talbot?
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