Shred of Evidence
Learn a lesson from Arthur Andersen: Destroying documents makes you look bad.
By Steven C. Bahls •
Opinions expressed by Entrepreneur contributors are their own.
When the Enron scandal was heating up, two accountants at ArthurAndersen worried about memos and records that could implicate thefirm. Suspecting a coming investigation, they geared up an existingcompany policy of destroying all documents not directly related tothe final audit report. Soon, the company was shredding documentsand deleting e-mails right and left.
That was a phenomenally bad idea. Investigators didn't buythe explanation that the firm was merely following its owndocument-retention policy. Whatever trouble the firm might havefaced over turning a blind eye to the financial shell games playedby its biggest client, destroying evidence made it far worse. TheJustice Department indicted the firm for obstruction of justice.Clients fled, and one of the five biggest accounting firms in theworld essentially died. There's a lesson in this for businesseslarge and small.
Continue reading this article — and all of our other premium content with Entrepreneur+
For just $5, you can get unlimited access to all Entrepreneur’s premium content. You’ll find:
- Digestible insight on how to be a better entrepreneur and leader
- Lessons for starting and growing a business from our expert network of CEOs and founders
- Meaningful content to help you make sharper decisions
- Business and life hacks to help you stay ahead of the curve
