This kind of paper can provide a brief review of the problems that led to the collapse of Lehman Brothers and the worries expressed by simply former Elderly Vice President, Mathew Lee. Next we can explore the kind of behaviors that led to the downfall of Lehman Siblings and other ill-fated companies. Also we will certainly explore a lot of theories regarding actions that leadership will take to create an environment, which motivates transparency and prevents considerable ethical breaches. Finally we provide perspectives in why integrity hotlines are generally not a reliable means of detecting and avoiding dishonest behavior.
Ex - Senior Vp Mathew Shelter had been with Lehman Friends for 14 years (Stevens & Buechler, 2013). In May of 2008 he courageously stepped into the spotlight and provided a idiota to the Lehman's Chief Financial Officer and Chief Compliance Officer detail what this individual perceived to get violation from the company's code of ethics (Jennings, 2012). Lee described irregular accounting practices, which involved the movement of large sums of debt in the company's "balance sheet". For his bravery, Lee was ended. Lehman ascribed Lee's departure to downsizing necessary due to the company's economical trouble (Stevens & Buechler, 2013). Lehman filed pertaining to bankruptcy in September of 2008, following several failed attempts by salvaging as well as selling the corporation.
Behaviors Resulting in Collapse
The primary reason in Lehman's decline was former Ceo, Dick Fuld. According to reports Fuld knew the risk posed by his actions. He also recognized that the company's practices had been deceptive and unethical (Stein, 2013). Fuld was a prominent, aggressive innovator, who ornamented himself with individuals that reinforced and arranged with his actions (Stein, 2013). The problem with Fuld, and similar top executives could possibly be attributed to narcissism. Stein contends: This deluded and somewhat sociopathic perception of electrical power
is associated with the narcissists' emotions that they can work on their own, do not need help, and deserve each of the credit for any success the organization may enjoy. These delusions also permit narcissists to see problems in the wider environment as the care of others only and in regards to which they are immune (p. 285).
Though Stien has a valid point, the explanation of narcissism somewhat defends the responsible specific, in that narcissists believe that their particular actions happen to be in the best interest of most involved and that they are indeed behaving in the best interest of the firm. The investigative reviews reveal that Fuld great counter parts actually understood their incorrect doing and went to great lengths to conceal all of them. These lengths included reducing anyone that exposed or spoke out against their methods. The common theme in the fall of Lehman, Tyco, Enron and others leaders is that the top executives recognized of the moral and legal breaches and ignored or perhaps quieted the warnings of employees (Jennings, 2012).
Very humble Work Environment
Some experts believe the medicament to narcissism is the " humble work environment. ” The humble work environment sees the sentiment that the firm is certainly not doing a good-job and needs to do better (Jennings, 2012). This kind of message is constantly conveyed which message becomes a part of the industry�s culture. In accordance to Jennings, the humble work environment invites dialogue and creates an ambiance where staff are cozy communicating with higher-ups. Jennings contends that a 13 year staff would not have been terminated pertaining to expressing his concerns, and would not possess needed to have got to formality of drafting a memo to document his concerns in a humble work place (Jennings, 2012). There is, however , a problem kind of environment. Research has says most employees require feedback and approval for their function (Appelbaum,...
Sources: Appelbaum, S. H., Keller, S., Alvarez, H., & Bédard, C. (2012). Company crisis: Lessons from lehman brothers and paulson & company. Intercontinental Journal Of Commerce & Management, 22(4), 286-305.
Jennings, M. (2012). Business ethics. Mason, OH: South-Western Cenage Learning.
Stein, M. (2013). When ever does narcissistic leadership turn into problematic? Dick fuld for lehman siblings. Journal Of Management Query, 22(3), 282-293.
Stevens, M., & Buechler, S. (2013). An examination of the lehman brothers code of values and the part it played in the company. Journal Of Leadership, Liability & Values, 10 (1), 43- 57.