Grant Thornton England: sector analysis and organizational challenges

Grant Thorton Overview

Grant Thornton International is a multinational firm that specializes in a network of independent accounting and consulting firms that provide tax, fiscal advisory services, and assurance to numerous public and private entities. The company is a non-profit, non-practicing global umbrella organization that requires membership and is organized as a private company, incorporated in the United Kingdom, and has no shares of capital stock. In 2012, the organization posted revenues of $4.2 billion with almost 36,000 global employees. There are over 2,500 member firms within the organization; each helping other companies grow to meet their potential and strategic models, all in the spirit of fairness, equitability and global cooperation (Grant Thornton 2011).

Over the past few years, the company has experienced numerous pressures because of the change in the global marketplace, expectations of stakeholders, and the individual goals of the partner services. This has resulted in a number of mergers, many of the firms carrying the Grant Thornton name, but not members of the single international partnership. Rather, these companies are separate national entities, and administer and govern themselves on a local basis (or region) like many other professional services networks. These mergers include the July 2007 merger with RSM Robson Rhodes, and the 2012 mergers with Roxespertiza in Russia, Ascenda CPA in China and the former BDO Offices in Australia (Grant Thornton "Press Room").

Significantly, though, in 2010 a U.S. judge approved payment of $6.5 million because of their involvement with the Italian company Parlamat's bankruptcy. Parlamat was a multinational dairy and food corporation that collapsed in 2003 due to fraud, money laundering, and questionable business practices. Grant Thornton acted as both fiscal advisors and auditors of the company, and even though a fine was levied. Along with Grant Thornton, Bank of America was cleared of any criminal charges in knowingly assisting Parlamant in fraud (Reuters 2010).

This is but one example of international situations faced by professional services organizations including Development+ and Grant Thornton. By working on a large, global basis, the definitions of business ethics vary. As globalism increases, various developing countries increase the quality and quantity of business they do with developed countries, and there are cultural schisms. Moral and ethical standards in accounting, bribery, collusion, and even inventory management have different meanings to different countries. Companies like Grant Thornton, as a worldwide network of members, must rely on certain standards of practice that allow them to remain ethical within their corporate structure. In fact, Grant Thornton and companies like them often encourage the dissolution of trade barriers, which also causes the differences in morality to rise to the surface in terms of human rights, political behavior, or even environmental conservation (Savage and McEltory 2005).