Lehman Brothers Ethics Case Study

Introduction

In the morning of September 15th 2008 something incredible happened in Wall Street, one of the most important newspapers, the Wall Street Journal, came out with a dramatic front page stating : “Lehman faces mounting pressures” and another sub article stating: “Lehman struggles to shore up confidence”.
The real moment when Lehman Brothers went officially in bankruptcy protection was in the night before at 1:45 AM. The crisis was not do to the failure of Lehman Brother but it was the moment when it became sure that the crisis would have reached global proportions.
It was the event that opened the eyes of every economist and shacked the financial system.
Lehman Brothers was number 4 in the worldwide rank of the largest investment

Business ethics are often guided by law, while other times provide a basic framework that businesses may choose to follow in order to gain public acceptance.” (investopedia)

Ethics are the main values a person uses to make decision making and main activities.
When we talk about ethics at a corporate level ,organizations have implemented a code of ethics to ensure the stability with policies and decisions.
It is important that the ethical philosophy implemented within a company is effective because it could cause a loss in reputation or even productivity
In the case of Lehman Brothers the organization failed to respect the code of ethics and the investment policies,due to this,a poor ethical environment resulted within the

An effective leader will try to make his goal the same as his workers or use a persuasive communication strategy in order to convice the workers to do what the leaders want as a goal.

Throughout the last centuries many leaders have ruled countries and some writers have divided the leaders into good and bad or effective and non-effective.

An effective leader is a person that has a lot of passion in what he/she does,they have ambition and also a vision of a better place to live with a better society.
On the other hand a non-effective leader even,if charismastic,if he/she uses the power to a personal benefit is a manipulator.
A leader who manipulated an entire country is for example Adolf Hitler when he came in power with his party.
There is an interesting experiment that can explain the cruelty that happened during the Nazi time.
The experiment was made by Stanley Milligram in 1961.
The experiment showed that normal people have a high probability to follow orders given an authority figure even if the case is killing another