| |
By
Liz Pecek
|
Like
many politicians throughout the country, students at BGSU
have been touched by Arthur Andersen’s money.
The
well-known accounting firm, which is linked to the ongoing
Enron controversy, donated large amounts of money to the university
in the past two years. In addition, Andersen employees recruit
BGSU students for temporary and permanent employment.
But
now the company’s credibility is being questioned. Andersen
audited the financial statements of Enron, the largest energy-trading
company in the world; as of December, however, Enron filed
for bankruptcy.
|
|
That
hasn’t stopped the company’s contributions to BGSU. Partners
at the company’s Toledo office donated $25,000 to fund a meeting
room in the Bowen-Thompson Student Union, according to Timothy Koder,
director of major gifts to the university in the Office of Development.
The room is one of a handful of others sponsored by corporate and
private donors.
Aside
from this one-time donation, Andersen participates in the Office
of Development’s corporate matching gift program. The company
matches each donation made by its employees to the university. Donors
specify where their money is used, whether it is to be given to
an academic department or a general university fund.
Last
year, Andersen matched approximately $10,000 in employee donations,
Koder said. In 2000, the amount was around $4,000. In both cases,
he said, more than three-quarters of the money was donated to the
Department of Accounting and Management Information Systems. Most
of the contributors, he said, are former BGSU students.
Kathryn
Hoops, managing partner of Andersen’s Toledo office, said the
largest concentration of BGSU alumni within the company are in the
Toledo and Cleveland offices. Many of them, she said, want to show
their appreciation to the university. An alumna of the university,
Hoops now serves on the board of directors for the Alumni Association.
“Personally, I had a full-tuition scholarship from the university
that allowed me to receive the education necessary to launch my
career,” Hoops said. “I made a vow when I graduated that
I would repay that tuition out of my future earnings so that future
students could have the same opportunity that I had.”
From
the Andersen donations, the Department of Accounting and MIS awards
scholarships in the company’s name, Koder said. Three awards
ranging from $500 to $1500 were given to undergraduate students
for this academic year.
The
company has reasons to support the university, just as it does to
support various politicians, said Brian Rohrs, an instructor at
the university. Rohrs worked in the auditing department at Andersen’s
Columbus office for more than four years. “All of the big public
accounting firms [donate money],” he said. “They want
to gain access so they can get their points-of-view across.”
As
Enron’s auditor, Rohrs said, Andersen employees checked Enron’s
financial statements to verify accuracy. In Enron’s case, Rohrs
said, the financial statements were far from accurate. This led
to the bankruptcy and the loss of millions of dollars for the company’s
employees and investors. “Andersen did everything, but management
didn’t tell them everything,” he said.
Beyond this point, people have different opinions about what happened,
Rohrs said. Currently, numerous legal actions regarding Andersen’s
link with Enron are taking place.
Besides
monetary contributions, Andersen employees also recruit students
for employment opportunities. In the past two years, five students
held cooperative education positions at various Andersen offices
in Ohio, said Nancy Alfieri, assistant director of the Cooperative
Education and Internship Program.
Each
fall, a representative from Andersen’s Cleveland office visits
the campus to speak with students about spring and summer positions,
said Tom Moore, director of recruiting at the Andersen office in
Cleveland.
Moore
said the company was affected by the sluggish economy this past
fall, which resulted in fewer opportunities for students with majors
in finance and computer science.
With
the ongoing controversy, however, Moore speculated some students
might lose interest in the company. “Anybody we’ll go
to will have heard about it,” he said. “I think people
will still have it in the back of their minds.”
The
questioning of Andersen’s credibility will make it harder for
the company to recruit such high-level students, Rohrs said. “If
I were a graduate now, I would have to think twice about putting
Andersen before anyone else [while searching for jobs],” he
said.
Some
students like Jody Spisak still consider Andersen a well-respected
firm. A senior business major, Spisak is a recipient of an Arthur
Andersen scholarship. “It was only one office that made some
errors in ethical judgment, not the firm as a whole,” she said.
Kara
Agnello, a senior accounting major, said she thinks the company’s
reputation has been damaged. Despite this, Agnello—who is also
an Andersen scholarship recipient—said she believes it is still
a reputable company. “It will take a lot for them to regain
the world’s trust,” she said. “But I do hope that
when it all pans out, it turns out to be [a few] that are dishonest,
not the whole firm.”
In
the meantime, students like Spisak and Agnello continue to benefit
from Andersen’s contributions to their futures.
|
|
