Ethical Failures in Accounting: A Comparative Analysis of High-Profile Cases and Their Implications for Governance Reform

Abstract

This paper investigates the systemic nature of ethical failures in accounting by examining four high-profile cases: Enron, WorldCom, Lehman Brothers, and Pitcher Partners. Through a qualitative desk-based analysis of publicly available documents, academic literature, and regulatory reports, the study explores how corporate misconduct in each case reflected deeper institutional weaknesses, rather than isolated lapses in individual judgement. Common themes—such as compromised auditor independence, ineffective board oversight, ethical leadership vacuums, and the normalization of deviance—emerged as recurring patterns across all cases. The study also considers how whistleblower suppression and ethical fading contributed to delayed accountability. By critically synthesizing secondary sources, this research highlights the limitations of compliance-based reforms and calls for a broader governance model grounded in ethical leadership, professional skepticism, and stakeholder accountability. The paper contributes to the growing discourse on ethical resilience in the accounting profession and identifies future research directions related to sustainability reporting, whistleblower protection, and the ethical challenges posed by technological advancements.