2005 Lyceum Speaker Series: Integrity
November 8, 2005
Upholding Ethics on the Macro and Micro Levels
by Kate McCann
Through his work as an accountant
for the Joint Committee on Taxation of the U.S. Congress, Brian Meighan
saw a severe lapse in integrity in business in the 1990s. During this
time, he said auditors looked the other way, and some corporations—like
Enron—“took advantage of our rules-based culture and were allowed to
ignore the principle of standards.”
In Enron’s case, the executives discovered that tax-motivated
transactions could generate financial earnings. The dozen double
deductions were complex and made by skilled people who knew how to weave
through tax law, completely ignoring the tax code of conduct.
As partner of the Washington office of PricewaterhouseCoopers, Meighan has seen a turn of the tide since Enron’s fall as businesses
have increased the value they place on integrity. However, he stressed the need for
personal responsibility, which must take place on the macro-level. The
government can play a part in monitoring integrity in business by
addressing the roots of the problem, he said.
“To change the behavior of advisors and corporations for the long-term,
Congress must address specific issues by enacting legislation and assign
general provisions to alter cost benefits,” he said
On a micro-level, Meighan addressed the important role of the individual
accountant to “stand up for the right thing” and to keep his compass
steady in the difficult profession of accounting. He said that the
responsibility of restoring the public’s faith in business is an ongoing
task for the next generation.
“Integrity exists not only in respect to the professional, but also in
respect to the individual,” Meighan said.
Notable Soundbites
On the formation of the Joint Committee on Taxation, whose
first job was to control the valuation of oil properties:
“Mixing oil, money and power in Washington D.C. can stir up
strong reactions.”
On reforming the tax code:
“The reform of tax code is sorely needed. It is complex and out
of control when I can barely go to a tax meeting without another
practitioner there.”
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