EXECUTIVE SUMMARY We were asked to conduct research regarding the current corporate ethics policies and social responsibility strategies for Deloitte and their main competitors. We accomplished this task by searching the company websites, reading recent articles and news releases, reading through interviews conducted with ethics officers, and interviewing current employees of the firm. From the information we gathered we were able to make conclusions and recommendations that will help Deloitte to stand out above their competition in these areas. Findings Our initial search showed that the Big Four are all very similar in how they conduct themselves ethically. In a very regulated industry, and with frequent opportunity for unethical behavior, these major firms have put in place many systems to prevent poor behavior. All of the firms provide a significant amount of ethical training to all employees, and they all have well-established lines of communication to report any ethical issues that arise. The differentiation occurs in the frequency of ethical trainings. In this regard, Deloitte stands above the rest by providing frequent, in-depth training. Deloitte also performs well when measuring its corporate social responsibility initiatives. Once again all of the firms are very similar in what they espouse as their active pursuits, however in digging deeper we found reason for skepticism among some of the main competitors, but we were more convinced that Deloitte truly cares. Deloitte’s initiatives are quantified in an annual report and verified by employees at the company, facts which did not hold true for all companies studied. Recommendations In regards to ethics we recommend that Deloitte leverage their existing training facility, Deloitte University, to provide additional ethical training. This facility provides an ideal setting to practice ethical case problems in group settings. We feel that by implementing ethical training at Deloitte University, Deloitte will be able to set itself up as the number one ethical firm in the industry. Corporate responsibility is clearly a priority at Deloitte, and we feel they have differentiated themselves in some regards from the competitors. In order to stand out as the top firm and attract lots of positive PR we recommend creating a disaster relief division. As a global company Deloitte is uniquely positioned to provide immediate assistance around the globe. By investing time and assets into emergency preparedness and relief Deloitte will be able to solidify itself as a company known for its corporate social responsibility.? EMPLOYEE ETHICS Important Ethical Issues Both public and private accounting firms handle and deal with very delicate information from their clients. If these firms don’t have a clear code of ethics, or if they do not adhere to the ethical principles they say they have, fraud and bankruptcy will occur. We can see this evident in the Arthur Andersen LLP case in 2002. Andersen, previously one of the Big Five accounting firms, engaged in unethical practices with Enron, which they annually audited. The unethical practices of Enron and the lack of ethical behavior and independence from Andersen, led to the bankruptcy of both companies. Important points which are being considered by each accounting firm and which are a current ethical issue in this industry, are the principles of independence and objectivity. Accountants must stay free from conflicts of interest and other questionable business relationships with their clients when performing accounting services. Employees should maintain independence by not engaging in investment opportunities with clients that might be seen as taking advantage of insider information. As we look back on the last few years, a large percentage of fraud and bankruptcy from accounting firms was the result of unethical behavior. Ethical Strategy Deloitte understands that risk in the marketplace, potential business failure, and, above all, human mistakes cannot be completely eliminated. The people of Deloitte are required to conduct themselves in accordance with applicable professional standards. In order to guarantee its employee’s honesty and professionalism, Deloitte has adopted the ethical principles and shared values from the DTTL Member Firms, of which Deloitte is one. These ethical principles are shown in the following table . Deloitte’s code of ethics is essentially implemented via training. Every employee is required to take trainings that emphasize the importance of independence and ethical behavior. These trainings are mandatory for every full-time employee annually and every intern that works at the firm. Furthermore, Deloitte sends emails to their employees every three or four months illustrating ethical dilemmas and discussing potential solutions. Jeffrey Jardine, Manager in the DC Office, says that these emails are “a constant reminder of who we are and whom we serve.” Given these